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GBP/USD Trading - US CPI - 16 Aug 2016

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GBP/USD Trading - US CPI - 16 Aug 2016
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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

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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