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GBP/JPY binary signal - UK Inflation Report hearing - 21 Nov 2017

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Expiry Time: 
21:00 GMT
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The UK inflation report hearing is expected to begin today at 10:00 GMT. The inflation reporting hearing will see the Bank of England monetary policy committee defending its monetary policy actions while also providing input to the UK government on the state of the inflation increase.

Consumer prices in the UK have begun to increase rapidly since the Brexit vote in 2016. At the latest reading, UK's consumer prices were seen rising 3.0% in October. This was the pace of increase in inflation during the period month. The sharp surge in inflation led the Bank of England officials to hike interest rates in the UK by 25 basis points.

However, this came at a risk of putting a squeeze on consumer spending. Officials at the BoE are caught in a dilemma as wages continue to rise only gradually compared to the stronger pace of inflation increase. The higher rates are expected to dampen spending which is already subdued.

Last week's wage data also showed worrying signs that employment levels were starting to fall. This was the first time that employment levels in the UK posted a decline. It comes as businesses are affected by the uncertainty due to the Brexit event.

The BoE's inflation report hearing is likely to provide more clues for the markets. BoE officials have also signaled that there could be further rate hikes in the coming months. However, the markets are expecting to see the BoE stay on hold for the considerable future.

Besides the inflation report hearings, the UK's public sector net borrowing data is also expected to be released 30 minutes earlier. The data will show the amount of borrowing from the public sector.

Based on the above, today's forex binary signal is GBPJPY. The currency pair continues to remain range bound but the upside momentum is building. Therefore, we are looking to purchase daily CALL options at 149.20 for a 21:00 GMT expiry time.

GBPJPY is expected to continue with its intraday bullish momentum as price action is expected to fill the gap from Friday's close and thus close higher on the day.

binary options signal gbpjpy 21 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.