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GBP/USD trading - UK inflation report - 11 May 2017

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GBP/USD trading chart 11 May 2017
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Yesterday, the quotes of the British pound descended slightly

The US published an excellent Federal Budget Balance for April. It amounted to 182.4 billion dollars, it is almost a historical record, the greater inflow was only in April 2001 (189.8 billion). Perhaps the strengthening of the US dollar would be more significant if the stock market growth is more stable.

Today, the British "super" Thursday

The Bank of England makes a decision on monetary policy, publishes a quarterly inflation report and publishes the Meeting Minutes. Nevertheless, the markets don’t wait for hints about the planned policy. The forecasts are mixed. The March trade balance is expected to increase from -12.46 billion pounds to -11.80 billion pounds. The construction output may add 0.3% after the previous -1.7%. The industrial production is forecasted to continue to descend (-0.3%) after 4-month compression. The manufacturing production is projected at -0.2%.

The US will publish a Core PPI index for April, the forecast is 0.2%, and weekly initial jobless claims – the forecast 245K against 238K a week earlier. We are looking forward to further strengthening of the US dollar.

How we trade binary?

We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2972 level. If our first target is not reached and the price goes below 1.2910, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2910 level.

Asset: GBP/USD
Direction: Call
Target price: 1.2972
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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