Investors expect the strengthening of the US dollar
The main event of the day - the publication of the US GDP for the 4th quarter in the final assessment. It showed an increase of 2.1% against 1.9% in the second assessment. The pair GBP/USD closed the day up by 34 points.
Today we will see important data
In the UK, the main indicator will be the current account data for the 4th quarter, the forecast is -16.3 billion pounds against -25.5 billion in the third quarter. In the final estimate, the UK GDP for the fourth quarter is expected to be unchanged, 0.7%.
In the US, the important data will be consumer spending/income for February. The personal spending is forecasted to grow by 0.2%, the income by 0.2%. The Michigan consumer sentiment index is expected to increase to 97.6 from 97.8. The Chicago PMI may slightly decline, from 57.4 to 57.2. We expect the decrease to the lower limit of the range 1.2420.
How we trade binary?
We would buy Put options if the price goes below the 1.2420 level. This scenario would be invalidated if the pair goes above 1.2502, in which case we would go for Call options with the end of the expiry.
Target price: 1.2420
Expiry time: 20:00 GMT