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GBP/USD Trading - UK GDP - 30 Sep 2016

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GBP/USD Trading - UK GDP - 30 Sep 2016
5/5 of 3 ratings

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.

Asset: GBP/USD
Direction: Put
Target price: 1.2950
Expiry time: 20:00 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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