On Monday, the British pound lost 35 points because of its general weakness.
Today the UK and the US are to publish interesting reports, but under equal circumstances, the US dollar retains its advantage.
The Core CPI is expected to decrease from 1.4% to 1.3%, the CPI may remain unchanged 0.5%. The RPI is forecasted at 1.7% vs. 1.6% in June. The housing prices are expected to grow from 8.1% to 8.3%.
In the US, we expect the growth of industrial production by 0.3% after rising by 0.6% in June. The Capacity Utilization Rate is expected to increase from 75.4% to 75.7%. The housing starts are expected at 1.18 million against 1.19 million in June, but the Building permits may increase from 1.15 million to 1.16 million. In July the Core CPI is forecasted to add 0.2% (year on year unchanged at 2.3%), the CPI is expected with zero growth.
In the evening, representatives of the Fed's Lockhart and Bullard have speech. Perhaps we'll see hints of the Fed FOMC minutes, which will be published tomorrow.
We expect the pair GBP/USD to decrease.
How to trade binary
We would buy put options if the pair GBP/USD falls below 1.2866. We would buy call options if the pair rises above 1.2950.
Expiry time: 20:00 GMT