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GBP/JPY binary signal - UK Construction PMI - 04 Dec 2017

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Expiry Time: 
21:00 GMT
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The UK construction PMI data for the month of November will be released today by Markit. The data is expected to be released at 09:30 GMT and will cover the month of November. According to the economists polled, construction activity in the UK is expected to show a modest increase to 51.2 for November, up from 50.8 registered in the previous month.

In October, the data showed that there was a modest upturn in the construction output sector. However, most of the activity was related to the housing activity. Commercial building activity had posted a decline while confidence in the sector fell to a 12-month low. It was the weakest level since December 2012.

On the positive side, the construction activity seemed to have rebounded. Previously, construction PMI was seen falling to 48.1 in September. This briefly marked a period of contraction in the sector while in October, the reading near 50 signaled that there was no major changes.

Data showed that the activity in the construction sector was rather mixed. While commercial activity declined, housing activity increased. This mixed picture comes amid the UK businesses concerned about the Brexit deal. The UK's decision to leave the EU has led some businesses already making plans to move to the EU.

Besides the PMI data coming out today, the Brexit talks will also dominate the news wires. The British Prime Minister, Theresa May is expected to visit Brussels today and meet with the EU leaders. News reports suggest that the UK and EU could finalize a deal within the next few weeks.

Today's forex binary signal is GBPJPY, the British pound continues to remain volatile reacting to both economic news and the Brexit developments. Technically, GBPJPY looks a bit overstretched and the Japanese yen could be looking to make a pull back.

Therefore, we would purchase daily PUT options at 151.77 for 21:00 GMT expiry time. We expect GBPJPY to fall back to close the gap and thus end lower on the day.

binary options signal gbpjpy 04 Dec 2017

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.