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GBP/USD Trading - deputy governor of BoE speech - 18 Nov 2016

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GBP/USD chart 18 Nov 2016
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The US CPI cast doubt on the December rate hike.

In October the core CPI added 0.1% vs. the forecast of 0.2%, the overall CPI increased by 0.4% as expected. The core CPI even fell from 2.2% to 2.1% y/y. On the other hand, the index of consumer inflation expectations (for 5 years ahead) jumped from 2.4% to 2.7%.

Yesterday Janet Yellen also announced the uncertainty of political change and the need to preserve the Dodd-Frank Act.

However, Ms. Yellen nevertheless noted that the rate hike will take place "relatively soon." The housing starts pleased investors yesterday. In October, the number of housing starts totaled 1.32 million against the expectations of 1.16 million and 1.05 million in September. This is the highest rate since September 2007. The number of building permits totaled 1.23 million against the expectations of 1.19 million. In November Philadelphia Fed Manufacturing Index dropped to 7.6 compared to 9.7 in October.

Today we do not expect any major macroeconomic data. However, we should pay attention to the statement of Ben Broadbent the deputy governor of the Bank of England. Also, James Bullard and William Dudley will have performances.

How to trade binary

We expect the short-term movement in the range of 1.2384 - 1.2356, the break of the lower limit will result in movement to the level of 1.2301. The short-term upward movement is possible in the range of 1.2500 - 1.2530, the break of 1.2530 will lead to a deep correction, the goal - 1.2588.

We would buy Call options if the pair rises above 1.2500. We would buy Put options if the pair falls below 1.2384.

Expiry time: 21:00 GMT

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.

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