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GBP/USD trading - US core PPI- 13 Apr 2017

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GBP/USD trading chart 13 Apr 2017
4.8/5 of 6 ratings

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.

Asset: GBP/USD
Direction: Put
Target price: 1.2537
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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