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GBP/JPY binary signal - UK Public sector net borrowing - 21 Jul 2017

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Expiry Time: 
20:00 GMT
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The UK's Public Sector Net Borrowing (PSNB) data will be released today at 0830 GMT. According to economists polled, the public sector borrowing is expected to rise 4.3 billion for the month of June, slower than the 6.0 billion expected in the previous month.

For the current financial year to date which is April/May 2017, the overall net borrowing from the public sector fell 0.1 billion to 16.1 billion British pounds. It was the lowest rate of borrowing since 2008.

The data was mostly positive for the UK as the budget deficit fell. Therefore, with expectations of 4.3 billion in June, the expectations are rather high that public sector borrowing will fall further.

In May, the UK Government welcomed the news. Chancellor of the exchequer, Philip Hammond welcomed the news as he reiterated the UK's treasury commitment to lowering the trade deficit.

Most of the declines in the deficit came on account of higher VAT receipts while income tax and national insurance revenues also rose during the period. However, most importantly, it was the stamp duty revenues from sale of property that proved to be main driver in the falling deficit.

According to data, stamp duty revenues rose 45% on a year over year basis. Als0, the higher VAT receipts showed that it was as a result of stronger retail sales in April and also the considerably warmer weather.

The UK's Office for National Statistics (ONS) had revised down the estimates for borrowing to 46.6 billion. This was lower than the previous estimates made which was at 51.7 billion.

Based on the above data, today's binary options trading recommendation is for GBPJPY. The currency pair had previously posted some declines after failing to break through the resistance zone established near 147.44 and 146.85.

Price consequently posted declines, briefly falling to 145.40 before staying subdued. We expect to see an upside breakout in the near term, which could send GBPJPY higher as a result. Therefore, we purchase daily CALL options near 145.24 for a 20:00 GMT expiry time. We expect GBPJPY to test the resistance level once again before closing lower on the day.

binary options signal 21 Jul 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.