The British pound has receded from the highs of the last two weeks
The UK government has finally informed the launch date of the Brexit procedure - March 29. The Cable reacted briskly to the news and closed the day down by 39 points.
Today we should pay attention to the data from the Great Britain
The core CPI is expected to grow from 1.6% y/y to 1.8% y/y. The CPI is expected to grow from 1.8% y/y to 2.1% y/y. The Producer prices index input can add 0.2% m/m, the PPI output can add 0.3%. The retail price index may rise from 2.6% y/y to 2.9% y/y. The house price index is expected to fall from 7.2% y/y to 6.4% y/y. The Public sector Net borrowing can show 2.5 billion pounds against -9.8 billion in January. Also, the balance of production orders from CBI is expected to decrease from 8 to 6 in March. It is unlikely that the UK data can push the pound above the strong technical level of 1.2415.
Yields on US government bonds are slightly rising today, which complements the overall picture of the US dollar strengthening after raising the Fed rate.
How we trade binary?
We would buy Call options if the pair rises and fixes above 1.2385. This scenario would be invalidated if the pair goes below 1.2325 in which case we would go for Put options with the end of the expiry.
Target price: 1.2385
Expiry time: 21:00 GMT