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GBP/USD trading - FOMC meeting minutes - 22 Feb 2017

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GBP/USD trading chart 22 Feb 2017
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The US dollar was unable to strengthen in anticipation of FOMC minutes

Yesterday, the US data on the Services PMI came out worse than expected, which allowed the pound to strengthen. The Services PMI was significantly lower than forecast: 53.9 against the forecast of 55.8 and 55.6 in the previous month. The Manufacturing PMI showed 54.3 against the forecast of 55.3.

Speech by Mark Carney did not bring any surprises

Speech by Mark Carney was neutral, although there was significant fact - the rate of economic growth hasn’t changed since the Brexit referendum. Carney also noted that in the case of the soft Brexit scenario the rate can be increased. The public sector net borrowing decreased by 9.8 billion pounds, the forecast was a little better, -14.0 billion.

Today in the UK the GDP for the 4th quarter is expected unchanged 0.6% in the second estimation. In the US, the existing home sales are projected to rise from 5.49 million to 5.54 million. In the evening, the minutes of the Fed's FOMC meeting will be published. It is expected that it will reflect the probability of three-time rate increase this year.

How we trade binary

We recommend buying Call options after the successful return of the pair GBP/USD above 1.2510. Level 1.2472 is an intermediate support for the pair GBP/USD.

We would buy Call options if the pair GBP/USD goes above 1.2510. This scenario would be invalidated if the pair goes below 1.2472 in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD

Direction: Call

Target price: 1.2510
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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