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GBP/JPY binary signal - BoE Governor Carney Speech - 30 Jan 2018

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Expiry Time: 
21:00 GMT
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The Bank of England Governor, Mark Carney will be speaking later this afternoon at 15:30 GMT. Carney is expected to testify before the UK's House of Lords of Economic Affairs Committee. The BoE Governor will most likely be quizzed about the inflation which has overshot the central bank's 2% target rate.

Besides inflation, other topics that could come up include the recent wage data and the UK's GDP growth. The central bank was pessimistic on the GDP data noting that the UK's fourth quarter GDP could remain around 0.4%.

However, actual data released last week showed that the UK's economy advanced 0.5% and fared slightly better than expected. The gains came as the UK's manufacturing sector managed to rebound while the economy was also supported by a stronger services sector. Construction activity continued to remain sluggish.

The recent inflation data showed that the UK's consumer prices rose at a slower pace of 3.0%. This was below November's consumer price rate of 3.1%. Despite the weaker pace of increase, inflation remains well anchored above the BoE's 2.0% target rate. The central bank had hiked interest rates in November last year. The recent decline in inflation could give the BoE officials some more time before hiking rates again.

The testimony from BoE Carney today can also shed light on what the central bank will do next week. The BoE will be holding its monetary policy meeting next week. No changes are expected to the interest rates and the central bank's asset purchase program. However, focus will shift to the forward guidance on when the BoE will hike rates next.

Based on the above, today's binary options signal is GBPJPY. The currency pair looks to have formed a top last week as the British pound eased against the Japanese yen. We expect that the declines will continue in the near term.

Therefore, we are looking to purchase daily PUT options at 152.84 for a 21:00 GMT expiry time. The modest retracement on an intraday basis will eventually see GBPJPY closing lower on the day.

binary options signal gbpjpy 30 Jan 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.