In October, the US industrial production was weaker than expected but nonetheless positive
In the US, the industrial production showed zero change against the forecast of growth by 0.2%, but rose from -1.0% to -0.9% year on year. The capacity utilization decreased from 75.4% to 75.3%.
Yesterday the UK also posted strong data
The British pound was able to resist the US dollar due to the reduction of unemployment from 4.9% to 4.8%. The average earning index added 2.3%, but the claimant count change increased by 9.8K vs. the forecast of 1.9K.
Today can be called the key to understanding the Fed sentiment.
If the October CPI is higher than expected, the rate is likely to be increased in December. The following forecasts: the core CPI + 0.2% (2.2% y/y - no change), the CPI + 0.4% (1.6% y/y vs. 1.5% y / y). Another important indicator - housing starts is expected to be 1.156 million in October against 1.05 million in September.
Philadelphia Fed Manufacturing Index can descend from 9.7 to 8.1. In the evening, Janet Yellen speaks on the economic outlook to Congress. It’s also worth to pay attention to the data on the UK retail sales. The forecast is 0.4%.
How to trade binary
The important support level is the area of 1.2412, the new descent to this level can return the big sellers to the market that will update the lows in the 1.2362 area. The buyers focus on how to re-gain a foothold on the resistance level 1.2441. Only then we can expect an increase in the area of 1.2495.
We would buy Call options if the pair GBP/USD increases above 1.2441. We would buy Puts if GBP/USD declines below 1.2412.
Expiry time: 21:00 GMT