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GBP/USD Trading - Janet Yellen speech - 26 Aug 2016

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GBP/USD Trading – Janet Yellen speech - 26 Aug 2016
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Yesterday's US data strengthened the US dollar.

In the US, the durable goods orders rose by 4.4% in July against the forecast of 3.4. The number of jobless claims was less than the previous week - 261K vs. 262K. However, the Services PMI showed 50.9 against the forecast of 51.4.

In the UK, the CBI distributive trades survey showed 9 vs. the forecast of -5 and -14 in July. But the pound was down all day on the relatively small trading volumes.

Today the UK is to publish data on the 2nd assessment of the GDP for the 2nd quarter. The forecast is in line with the first estimate of 0.6%.

The US also present data on GDP, but it is expected to decrease compared to the first assessment.
The US Trade Balance is expected with a slight improvement, -62.3$ against -63.3$ billion in July. The Michigan consumer sentiment is expected to rise from 90.4 to 90.6.

Also today, Janet Yellen will have speech at the symposium in Jackson Hole. Now there is no doubt in neutral speech of the Fed chairman. The movement of the pair GBP/USD will depend on how investors understand the performance of Janet Yellen.

How to trade binary

We would buy put options if the pair GBP/USD falls below 1.3196.

Asset: GBP/USD
Direction: Put
Target price: 1.3196
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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