The US stock market fell after Trump statement
Yesterday, the main event was the fall of the US stock market by 1.24% in connection with the proposal of Donald Trump to close the program of compulsory health insurance (Obamacare). The US dollar weakened after it.
Yesterday's GBP/USD growth was also supported by good data from the UK
In February, the core CPI grew from 1.6% y/y to 2.0% y/y against the expectations of 1.8%. The CPI rose from 1.8% to 2.3% y/y against the expectations of 2.1% y/y. The Core RPI rose to from 2.9% y/y to 3.5% y/y. In January, the house prices were strongly revised downward - from 7.2% y/y to 5.7% y/y. The February forecast was 6.4%, the data showed 6.2% y/y. Such a sharp decline in property prices on a back of rising retail prices, with a fall in sales volumes and a fall in industrial production (-0.4% in January) signals a crisis in the UK.
Today, the US publishes data on existing home sales. The forecast is 5.57M against the previous 5.69M. Tomorrow we will see new home sales. The forecast is 566K against 555K which won’t create any fears in the local situation.
The Cable is currently being held at the local maximum and there may still be a fight to 1.2520.
How we trade binary?
We would buy Call options if the pair rises and fixes above 1.2510. This scenario would be invalidated if the pair goes below 1.2433 in which case we would go for Put options with the end of the expiry.
Target price: 1.2510
Expiry time: 21:00 GMT