Yesterday's data played against the US dollar
In the US, the Composite PMI was downgraded from 54.0 to 53.6 against the forecast of 54.1. The ISM Non-Manufacturing PMI also fell, from 57.5 to 56.9, against the expectation of 57.1. The factory orders decreased by 0.2% in April. In the UK, the Services PMI showed an even lower decline (53.8 vs. 55.8), but the pound strengthened on the general weakening of the US dollar.
Nevertheless, geopolitical events don’t contribute to the weakening of the US dollar
In the Middle East, a new wave of tension - seven countries (Saudi Arabia, the UAE, Egypt, Yemen, Libya, Bahrain, Maldives) severed the diplomatic relations with Qatar on charges of supporting terrorism. In this situation, the strengthening of the US dollar would look more logical, if only because Saudi Arabia financed IGIL more than Qatar. On these events, the oil price continues to become cheaper.
In the UK, the surveys show that the Conservatives will receive fewer seats in parliament than they have now.
In the US, the number of open vacancies in the labor market excluding the agricultural sector (JOLTS Job Openings) is projected to decrease from 5.74 million to 5.65 million. The pair GBP/USD can grow to 1.2965.
How we trade binary?
We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2930 level. If our first target is not reached and the price goes below 1.2860, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2860 level.
Target price: 1.2930
Expiry time: 20:00 GMT