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GBP/USD Trading - FOMC meeting minutes - 17 Aug 2016

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GBP/USD Trading - FOMC meeting minutes - 17 Aug 2016
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Yesterday, the British economic indicators came out better than expected and strengthened the pound.

In the UK, the CPI rose from 0.5% to 0.6% in July against zero forecast. The retail prices index increased from 1.6% to 1.9% (forecast 1.7%). The housing prices index jumped from 8.1% to 8.7%.

Yesterday the head of the Federal Reserve Bank of New York William Dudley said that the September rate hike is possible. As we expected, some of the officials of the Federal Reserve was to hint at this event.

The US data were also strong. In July, the housing starts totaled 1.21 million against 1.19 million in June and the forecast of 1.18 million. The Core CPI gained 0.1% against the forecast of 0.2%. The industrial production showed an increase by 0.7% while waiting for 0.2%. The capacity utilization rate increased from 75.4% to 75.9%.

Today the UK will present data on labor market. The unemployment rate is expected unchanged, but the claimant count change may increase by 9.5K. The average earning index + bounus is expected at 2.4%.

But the main event of the day - the publication of the FOMC meeting minutes. After yesterday Dudley hint we expect a more determined attitude and a stronger dollar.

How to trade binary

We would buy call options if the pair GBP/USD rises above 1.3085. We would buy put options if the pair falls below 1.2965.

Expiry time: 20:00 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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