GBP/USD showed a mixed movement yesterday
In the UK, the April inflation indicators were better than expected. The Core CPI increased from 1.8% y/y to 2.4% y/y, against the expectation of 2.2% y/y. The total CPI showed 2.7% y/y against the forecast of 2.6% y/y. The retail prices rose from 3.1% to 3.5% y/y, with expectations of 3.4% y/y. The producer price index at the output added 0.4% against the forecast of 0.2%. The house price index fell from 5.6% y/y to 4.1% y/y.
The US data were mixed
In April the housing starts amounted to 1.172 million vs. the forecast of 1.260 million. The building permits amounted to 1.23 million against the expectations of 1.27 million. The industrial production added 1.0% against the forecast of 0.4 %, and capacity utilization ratio was 76.7% against the forecast of 76.3%. This proves that production does not depend on the exchange rate of currencies.
Today the US has an empty calendar. Oil traders will traditionally pay attention to data on crude oil inventories. The reserves are expected to decrease by 2.36 million barrels.
The UK will publish data on labor – the forecasts are neutral. The unemployment rate remains at 4.7%, the number of unemployed can increase by 7.5K, the average earnings can increase from 2.3% to 2.4%.
How we trade binary?
We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2942 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.
Target price: 1.2942
Expiry time: 20:00 GMT