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GBP/USD trading - ISM Non-Manufacturing PMI - 05 June 2017

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GBP/USD trading chart 5 June 2017
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Deceptive behavior of the pair GBP/USD

On Friday, the US provided quite good data on the labor market, but the pair GBP/USD unexpectedly showed growth. In May, the NFP showed 138K against the forecast of 185K. The unemployment fell from 4.4% to 4.3%, but due to a decrease in the participation rate from 62.9% to 62.7%. The average hourly earnings increased by a projected 0.2%.

In general, we don’t see an imbalance in the US labor market

The employment is increasing, the earnings are rising. Probably, investors seriously believed that with almost full employment (according to the speakers of the same day P. Harker and R. Kaplan) the NFP should be in the range of 150-200 thousand, as it was the case with unemployment at 5-5, 5%.

The probability of the June rate increase grew to 88.5%. Investors should note that Wednesday, June 7th, will be an extraordinary day - the testimony of the former head of the FBI James Comey in the US Congress, parliamentary elections in Britain. And nothing can be assumed with certainty over all these events.

Today, the UK will publish data on Services PMI, which is expected to decline from 55.8 to 55.0. The US can show the weakening of indicators: the factory orders are expected at -0.2% in April after an increase of 0.5% in March. The ISM Non-Manufacturing PMI is projected to fall from 57.5 to 57.1 in May.

How we trade binary?

We would buy Put binary options with 20:00 GMT expiry if a one hour candle closes below the 1.2860 level. If our first target is not reached and the price goes above 1.2902, the first scenario would be invalidated. We would buy Call options if a one hour candle closes above the 1.2902 level.

Asset: GBP/USD
Direction: Put
Target price: 1.2860
Expiry time: 20:00 GMT

Comments

Jannik P.'s picture

Target Price: 1.2902
Close Price: 1.2908
Direction: Call
Expiry Time: 20:00 GMT
Result: ITM

Jannik P.

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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