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GBP/JPY binary signal - UK Jobs Report - 24 Jan 2018

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Expiry Time: 
21:00 GMT
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The UK's Office for National Statistics (ONS) will be releasing the monthly labor market data today starting at 0930 GMT. According to the economists polled, the UK's unemployment rate is expected to remain steady at 4.3% while the average earnings index for the three months ending December is expected to rise at a steady pace of 2.5%.

The UK's unemployment rate hit an all time low at 4.3% in October last year. The unemployment rate has held steady at this level for three months and could remain at this historic low for the month of December as well.

The average earnings index is expected to see a steady pace of increase at 2.5%. This marks the same pace of increase in earnings in the previous month. However, with December's inflation easing to 3.0%, wage growth could be seen rising slightly higher. Despite this, wages continues to lag behind inflation indicating a squeeze on the UK household and spending.

The Bank of England hiked rates in November last year in an effort to cool down inflation. By some estimates, the UK's consumer prices are expected to have peaked at 3.1% and could be expected to fall in the near term. This could bode well for the UK wage which has been in a steady trend but not as fast as the pace of inflation increase.

Based on the above, today's binary options signal is GBPJPY. The British pound has been trading stronger in recent weeks. The currency gained strength on the back of a weaker U.S. dollar and broader improvement in the Brexit sentiment.

The GBPJPY was seen trading with inside bar yesterday. With a temporary top being formed we are looking to purchase daily PUT options at 154.33 for a 21:00 GMT expiry time. GBPJPY is expected to post a modest retracement to this level before closing lower on the day.

binary options signal gbpjpy 24 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.