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GBP/USD Trading - Non-farm Payrolls - 04 Nov 2016

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GBP/USD chart 4 Nov 2016
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Yesterday was the decision of the Supreme Court of England.

Mandatory government was in consultation with the Parliament in the process of exit from the EU. This means slowing down the process, and the Cable could strengthen sharply. The Minutes of the Bank of England supported the bullish mood of the players. The forecast on GDP for the current year increased from 2.0% to 2.2%, the inflation forecast was raised from 2.0% to 2.7%. Even the index of business activity in the service sector grew assessment from 52.6 to 54.5 against the forecast of growth to 52.4.

The US stock market has decided to wait for the release of data on labor market and decreased by 0.44% than strengthened the pound.

In the US, the ISM non-manufacturing PMI decreased from 57.1 in September to 54.8 in October. The factory orders gained 0.3% in September against the forecast of 0.2%.

Today, the main news will be the US employment data. The Non-Farm Payrolls is expected to grow from 156K to 175K. The unemployment rate can be reduced from 5.0% to 4.9% in September. The average hourly earnings are expected to increase by 0.3%. The September trade balance is projected to rise from -40.7 billion to -37.5 billion dollars.

The Cable plays the interesting scenario. We can see the movement in any direction, regardless of any economic indicators.

How to trade binary

We would buy Call options if the pair GBP/USD rises above 1.2510. We would buy Put options if the pair falls below 1.2420.

Expiry time: 21:00 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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