Yesterday, the Cable was unable to continue strengthening and traded sideways
In the US, the data went better than expected: Small Business Optimism index from NFIB showed 105.8 points vs. the forecast of 98.4 in November, the wholesale inventories increased by 1.0% in November vs. the forecast of 0.9%. This data increased the forecast of GDP for the 4th quarter to 2.9%.
Today, the markets are waiting for Donald Trump speech
The main event of the day will be a big press conference of the US president Donald Trump on which policies, investors, and journalists want to hear the further plans of the future president. We don’t think that we will see the fundamental change in rhetoric, just waiting for softening of some sharp moments. Accordingly, we assume the further increase in the stock market and the strengthening of the US dollar.
On Thursday and Friday the Fed members Ch.Evans, P.Harker, D.Lokhard, D.Bullard, R.Kaplan, D.Yellen will have speech. We do not exclude that they are preparing for the confrontation with Trump in the case of aggressive comment concerning Fed today.
However, in the morning it’s worth to pay attention to the British data. In November, the industrial production is expected to grow by 0.8% against a decline of 1.3% in October. The manufacturing production is expected to grow by 0.5% after the previous reduction of 0.9%. The construction production can show growth of 0.3%.
Today Mark Carney will have speech. It is possible that due to the recent sharp statements from Theresa Mae, Mark Carney can also comment Brexit. In the evening we get a forecast of GDP from NIESR.
How to trade binary
During today's Asian session the British pound is traded sideways against the US dollar. The sellers have an important support level 1.2120. The break of this level will lead to a reduction in the area of 1.2097. The buyers will be able to feel the power if they fix above 1.2192. Such a situation would lead to an increase in demand and an increase of the pair GBP/USD at the 1.2251 area. We would buy Put options if the pair GBP/USD falls below 1.2120. This scenario would be invalidated if the pair goes above 1.2192, in which case we would go for Call option with the end of the expiry.
Target price: 1.2120
Expiry time: 21:00 GMT