The markets are watching the geopolitical situation
The British data showed that the average earnings level is trying to stay at the highs achieved on the back of a strong increase in the number of jobless claims.
Brexit has had a significant impact on the British economy
The UK GDP growth slowed after an increase of 2.0% in the third quarter of 2016 by the end of the year. And although the first quarter of 2017 showed an increase of 0.7%, the overall pressure is present in the economy, which forces the Bank of England not to take action, despite a sharp increase in inflation to 2.3%.
The crude oil inventories showed a stronger decline than expected, to 2.166 million barrels against the forecast of 0.087 million barrels. However, on the back of the news that OPEC exceeded the volumes of the decline in crude oil production, the oil quotes failed to continue their growth.
Today, the US will publish data on PPI, which is expected to decline from 0.3% to 0.0%. The core PPI is expected to be 0.2% vs. the previous 0.3%. The initial jobless claims can increase from 234K to 245K.
How we trade binary?
In our view, the price will continue downward if reach 1.2537 level and we would buy Put binary options at that level. If our first target is not reached and the price goes above 1.2588, the first scenario would be invalidated. We would buy Call options if a one hour candle opens and closes above the 1.2588 level.
Target price: 1.2537
Expiry time: 20:00 GMT