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GBP/USD binary signal - U.S. ISM Manufacturing PMI - 01 Mar 2018

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Signal details
Entry Price: 
1.3778
Close Price: 
1.3774
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The U.S. ISM manufacturing PMI data will be coming out today at 15:00 GMT. According to the economists polled, the manufacturing activity in the United States, as measured by the ISM's PMI gauge is expected to show a reading of 58.7. This marks an slight decline from January which showed that index rising to 59.1.

The ISM's manufacturing PMI data will be the first of the economic reports ahead of the Fed's meeting later this month. By some estimates, the economic activity covering the month of February will potentially be taken into consideration when the Federal Reserve meets for its monetary policy meeting. The speculation for a rate hike in March is strong.

However, a disappointing string of economic indicators could no doubt change the expectations and could send the U.S. dollar weaker again.

Despite the inherent risks, preliminary manufacturing activity across various regions showed that the ISM's manufacturing PMI could potentially come out stable with no downside surprises. Even in the event of a decline in the PMI index, it is likely that the Fed will ignore one month's data.

Besides the ISM manufacturing report, the new Fed Chair, Jerome Powell will be presenting his testimony to the U.S. Congress once again. The U.S. dollar had previously strengthened on his comments about the U.S economic outlook.

Based on the above, today's binary signal is GBPUSD. The currency pair was seen weakening over the past few days, mostly due to inflows into the U.S. dollar. With price breaking past the 1.3902 level of support, we expect the downside to continue.

Therefore, we would purchase daily PUT options at 1.3778 for a 21:00 GMT expiry time. We expect the intraday volatility to push GBPUSD to this level before closing lower on the day.

binary options signal gbpusd 01 mar 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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.