Sorry, you need to enable JavaScript to visit this website.

GBP/USD Trading - Fed interest rate decision - 01 Feb 2017

You are here

GBP/USD trading chart 1 Feb 2017
5/5 of 5 ratings

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.

Asset: GBP/USD

Direction: Call

Target price: 1.2580
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.

You may also read