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GBP/USD trading - US 30-year bond auction - 09 Mar 2017

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GBP/USD trading chart 9 Mar 2017
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Yesterday the main event was the fall of oil

The WTI oil fell by 4.9% after the release of data on oil reserves, which showed a weekly increase of 8.21 million barrels against the expectations of 1.97 million and 1.50 a week earlier. The forecast for the world demand for the 4th quarter was also lowered.

The US data were better than expected

In February the ADP non-farm employment change showed an increase by 298K against the expectations of 190K.

Today, the UK has an empty calendar. The US traditionally publishes data on the initial jobless claims. But it is worth to pay attention to the auction for 30-year government bonds ($12 billion). The matter is that since the beginning of the year the Treasury has reduced the US foreign debt by $80 billion, and now its gradual growth is taking place. Investors are interested how long this trend will last. In the current situation, a new stage of government bond placement increases the demand for the US dollars (and the debt increases by another 30 billion).

How we trade binary

We would buy Put options if the pair GBP/USD goes below 1.2140. This scenario would be invalidated if the pair goes above1.2213 in which case we would go for Call options with the end of the expiry.

Asset: GBP/USD
Direction: Put
Target price: 1.2140
Expiry time: 21:00 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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