The reduction in oil production was the main news yesterday
Yesterday, the oil added 8.6% after the OPEC decision to cut production to 32.5 million barrels per day for a period of 6 months. Also, in the US crude oil inventories fell by 0.884 million barrels against the forecast of an increase by 0.636 million barrels.
This agreement, of course, set the direction of the market, but we will not rush to make any conclusions
If the growth of the oil price is not provided for US foreign policy, it will be short-lived. At the same time, the amount of the reduction is the statistical error (5%) including smuggling, so it’s not correct to say that 1.166 million barrels affecting the proposal.
In the US personal income increased by 0.6% vs. 0.4%, personal spending rose by 0.3% on expectation of 0.5%. The Chicago PMI jumped from 50.6 to 57.6, while expected growth to 52.0. The existing home sales rose by 0.1% in October, the forecast was 0.2%. Non-farm employment change from ADP showed good growth – 216K against the previous 119K and the forecast of 165K .
The United Kingdom introduced the bank stress test results, and the traditionally the Royal Bank of Scotland (RBS), Barclays and Standard Chartered have found a clear weakness.
Today, in Britain, the house price index has shown 0.1% as expected. The manufacturing PMI could rise from 54.3 to 54.5. In the US, the ISM Manufacturing PMI is expected to increase from 51.9 to 52.2. The construction spending is expected to grow from the previous -0.4% to 0.5%.
How to trade binary
The short-term upward movement is expected in the range of 1.2512 - 1.2546, the breakout of the upper limit will allow the pair GBP/USD to rise to 1.2622. The sellers want to return to the 1.2509. If they do it, the pair can decline to 1.2479.
We would buy Call options if the pair goes above 1.2546. This scenario would be invalidated if the pair goes below 1.2509 in which case we go for Put option with the end of the expiry.
Target price: 1.2546
Expiry time: 21:00 GMT