The US dollar could strengthen due to the positive data yesterday.
The US GDP for the 2nd quarter totaled 1.4% in the final assessment vs. 1.3%. In August the trade balance showed better figures than expected: -58.4 billion vs. the forecast of -62.6 billion and -58.8 billion in July. The number of jobless claims amounted to 254k vs. 260K.
Even the expectations of the December rate increase (after Janet Yellen speech) increased from 46.5% to 48.0%.
We believe that the strengthening of the US dollar will continue. Today we expect the good US data. The personal consumer spending is expected at 0.1%, the income at 0.2%. Chicago PMI is expected to increase from 51.5 to 52.1 in September.
The UK GDP is expected unchanged at 0.6% in the final assessment for the 2nd quarter. The balance of payments may show growth in the 2nd quarter.
How to trade binary
We would buy Put options if the cable descends below 1.2950.
Target price: 1.2950
Expiry time: 20:00 GMT