Yesterday, the President Trump's chief trade advisor Peter Navarro surprised the markets
Peter Navarro said that Germany "exploits the American and European partners" through the weak euro. The Cable added around 150 points after the decline due to the weak lending data. The net lending to individuals amounted to 4.8 billion pounds against 5.1 billion in November. The mortgage approvals decreased to 67.90K against the forecast of 69.00K.
Today the markets focus on the FOMC meeting
The markets consider a rate hike in June and December. The Fed focuses on 3 increases. After the first decisive steps of the new president, the Fed also will become more decisive and significantly strengthen to keep the rates unchanged. And we can see it today.
The ADP non-farm employment change is expected to increase from 153K to 165K. The ISM Manufacturing PMI is expected to growth from 54.5 to 55.0.
In the UK, the Manufacturing PMI is projected to decrease from 56.1 to 55.9.
How to trade binary
The short-term downward movement, as well as the consolidation, is possible in the range of 1.2518 - 1.2413. The upward movement is possible after the break of 1.280.
We would buy Call options if the price goes above 1.2580. This scenario would be invalidated if the pair goes below 1.2518, in which case we would go for Put option with the end of the expiry.
Target price: 1.2580
Expiry time: 21:00 GMT