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GBP/JPY binary signal - UK Inflation - 14 Nov 2017

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21:00 GMT
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A busy week for the British pound starts off with today's inflation figures. The data is expected to be released at 09:30 GMT by the UK's Office for National Statistics (ONS). According to the economists polled, consumer prices in the UK are forecast to have increased 3.2% on the year for the month ending October.

This puts the headline inflation rate in the UK about 1.2% above the Bank of England's inflation target rate of 2.0%. Core consumer prices are also expected to rise to 2.9% in September. This shows that consumer prices continued to accelerate on both the core and headline inflation rates.

The increase in consumer prices came about as the Bank of England increased interest rates at its meeting earlier in November. The central bank raised interest rates by 25 basis points to 0.50%. This came after consumer prices showed no signs of easing.

However, the central bank was forced to raise rates despite the fact that economic activity in the UK was subdued. Wage growth remained weak and failed to catch up with the steady pace of acceleration in inflation.

Although consumer prices might have increased in October, there is scope that inflation might start to cool in the coming months. This is because of the November rate hike by the Bank of England.

Based on the above, today's signal for binary options trading is GBPJPY. The currency pair has remained volatile in the past few sessions although no significant trend has been maintained.

Therefore, we would purchase daily CALL options in GBPJPY at 149.05. With price consolidating near the support level, we expect that the higher inflation rate will push GBPJPY to close higher on the day.

binary options signal gbpjpy 14 Nov 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.