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GBP/USD Trading - ISM Manufacturing PMI - 01 Sep 2016

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GBP/USD Trading - ISM Manufacturing PMI - 1 Sept 2016
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Yesterday's data increased the volatility.

In Britain, the Nationwide HPI grew by 0.6%in August vs. the forecast of -0.3%. The bulls immediately took advantage of this.

In the United States the non-farm employment change from ADP amounted to 177K new jobs against 194K in July and the forecast of 174K. This is a positive signal before Friday's data on labor.

The existing home sales rose by 1.3% vs. the forecast of 0.7%. However, Chicago PMI collapsed from 55.8 to 51.5 against the expected decline to 54.1.

Today the UK will present data on Manufacturing PMI which is expected to grow from 48.2 to 49.1. The US Manufacturing PMI is projected to decrease from 52.6 to 52.0, which is probably already known after a weak Chicago index. This can seriously weaken so hard growing industrial production. The industrial data will be published in two weeks.

So the Fed has significant reason to not raise rates in September.

How to trade binary

We would buy Call options if the pair rises above 1.3155. We would buy Put options if the pair falls below 1.3110.

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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