Yesterday, no significant events occurred
The British pound slightly corrected after the decline last week. At the University of Ford, Janet Yellen speech didn’t cause any reaction of investors, although she stated about the practically fulfilled conditions (employment and inflation) for the termination of the soft policy.
Today the market can cheer up
The UK will present a lot of inflation data for March. The consumer price index is expected to decrease from 2.3% y/y to 2.2% y/y. The core CPI is expected at 1.9% y/y against 2.0% y/y earlier. The retail prices are projected to decline from 3.2% to 3.1%. Even the house price index is expected to decrease from 6.2% to 6.1%. This morning, the BRC retail sales monitor showed -1.0% against -0.4% in April.
In the US, the NFIB small business optimism may fall from 105.3 to 104.7.
How we trade binary?
In our view, the price will continue downward if reach 1.2364 level and we would buy Put binary options at that level. If our first target is not reached and the price goes above 1.2430, the first scenario would be invalidated. We would buy Call options if a one hour candle opens and closes above the 1.2430 level.
Target price: 1.2364
Expiry time: 20:00 GMT