The Cable gained 368 points after the speech of British Prime Minister Theresa May
In fact, the Prime Minister said nothing new - so far spoken mainly about the complete exit of Great Britain from the EU without saving any segment in the total European market, instead, we heard about the preservation of trade links through the global transatlantic trade partnership.
Investors didn’t find any reasons for the growth of the pound, and it may seem strange, we consider this growth as the prepared large-scale speculation
The trading volumes were relatively small, they were less than 11 of January when Donald Trump gave a press conference and less than 9 November when he won the presidential election. Obviously, the market was oversold and speculators took advantage of this. Of course, it was a powerful impulse, but by the time this growth will be short-lived.
Yesterday, Donald Trump said that a strong dollar is killing the US economy. As we can see, verbal intervention took place, but it isn’t backed by anything, like most his applications. According to the vice-president of the Fed's William Dudley, the FOMC won’t give up the plan to raise rates even if inflation as "temporary factors" remains unchanged.
Today the UK is to publish data on the labor market. In December, the number of jobless claims wasn’t stable, the forecast is 5K against 2.4K in November. The overall unemployment rate is expected unchanged 4.8%. In November, the average earnings excluding bonus are expected to increase by 2.6% vs. the previous 2.5%.
In the US, the industrial production is expected to increase by 0.6% in December after the previous decline by 0.4%. The capacity utilization rate is expected to from 75.0% to 75.6%. In December, the core CPI is projected to increase by 0.2%. The CPI is to increase by 0.3%. If inflation rates aren’t worse than expected, it will be a clear hint of an early rate hike.
How to trade binary
The short-term upward movement is expected in the range of 1.2430 - 1.2517, the breakout of the upper limit should be accompanied by the strong upward movement. The short-term downward movement is possible in the range of 1.2305 - 1.2246. We would buy Put options if the pair GBP/USD falls below 1.2305. This scenario would be invalidated if the pair goes above 1.2430, in which case we would go for Call option with the end of the expiry.
Target price: 1.2305
Expiry time: 21:00 GMT