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GBP/USD Trading - inauguration of Donald Trump - 20 Jan 2017

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GBP/USD chart 20 Jan 2017
4.3/5 of 6 ratings

The Cable shows a slight strengthening

In yesterday's speech in the Senate Committee, the Candidate for the post of finance minister Steven Mnuchin confirmed that the long-term US policy - this is still a strong dollar, and the debt limit must be raised sooner rather than later, and that will keep the high demand for the US dollar.

The Fed officials also confirmed this thesis

Janet Yellen and William Dudley also confirmed the thesis of three rate rises this year, however, the markets expect the near increase only in June. We also doubt the three rate increases. Yesterday the US data came out better than expected, but investors are already prepared for today's inauguration of Donald Trump and therefore eased control on foreign exchange market. In December the volume of housing starts amounted to 1.22 million against the expectations of 1.20 million, and the Philadelphia Fed Manufacturing index grew from 21.5 to 23.6.

Today the UK will present data on retail sales for this month (forecast -0.1% vs. 0.2% in November). The investors are waiting for the inaugural speech of Donald Trump. This event can be perceived or trumpeted to the public as a negative factor for the markets, but the thing is, as far as the markets have decided to trade the first day of Trump's presidency.

How to trade binary

During today's Asian session the British pound rose slightly against the US dollar. Today, buyers expect the continuation of the current upward trend, which may be possible only after the GBP/USD rises above 1.2377. The further objective is 1.2415. The sellers will try to gain a foothold below the first support level of 1.2328. Only after his breakdown, we can consider a larger downward trend which will lead the pair GBP/USD to the 1.2302 area.

We would buy Put options if the pair GBP/USD falls below 1.2328. This scenario would be invalidated if the pair goes above 1.2377, in which case we would go for Call option with the end of the expiry.

Asset: GBP/USD

Direction: Put

Target price: 1.2328
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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