Yesterday, the US dollar was trying to strengthen in anticipation of an aggressive speech by Janet Yellen
Today, the UK expects the rise in January inflation indices. The Core CPI is forecasted to rise from 1.6% in December to 1.7% in January. The total CPI is expected at 1.9% against the previous 1.6%. The producer price index is expected to grow by 1.0%. The house price index is expected to increase from 6.7% to 6.9%.
In the US, the speech of Janet Yellen in the banking committee of the Senate will be the main event
In January the producer price index is expected to grow by 0.3%. The NFIB small business optimism index is projected to decline from 105.8 to 105.1. Tomorrow the data on retail sales and industrial production will be published. The forecast is small for the both indicators, 0.1% m/m, which weakens the optimism of investors. We expect the pair GBP/USD in the range of 1.2580-1.2680.
How we trade binary
The area 1.2564-70 provides a strong resistance for the pair GBP/USD. Here the GBP/USD can stop its growth. We would buy Call options if the pair rises above 1.2564 with the target at 1.2612. This scenario would be invalidated if the pair goes below 1.2520, in which case we would go for PUT option with the end of the expiry.
Target price: 1.2564
Expiry time: 21:00 GMT