Today's inflation data can affect the FOMC
On Tuesday, the British inflation rates turned out to be good. The pound got an excellent chance to correct and added 93 points. The core CPI increased from 2.4% y/y to 2.6% y/y. The total CPI increased from 2.7% y/y to 2.9% y/y. The retail prices also added 0.4% against the forecast of 0.3%. The housing price index added significantly - from 4.5% y/y to 5.6% y/y, with the expectation of a decrease to 3.7% y/y.
However today, Britain's optimism may fade due to data on labor
The number of jobless claims may increase from 19.4K to 20.3K. The average earnings are projected at the previous 2.4%. The unemployment rate is expected to remain unchanged, 4.6%.
The US will publish data on the CPI, which even before the announcement of the Fed decision on the rate can bring nervousness to the market, as according to the views of many market participants, even today's inflation data can affect the decision of the FOMC members. The core CPI is expected to grow by 0.2%. The CPI is expected to grow by 0.1%. The May retail sales are expected to grow by 0.1%. The business inventories are expected at -0.2%.
At today's meeting, the probability of an increase is 90%. The probability of an increase by 0.50%, to 1.50%, is 29%. The investors are also waiting for more information on the intentions of the Fed to reduce its own balance.
We are waiting for the rate increase and the decrease of the British pound to 1.2610.
How we trade binary?
We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2800 level. If our first target is not reached and the price goes below 1.2640, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2640 level.
Target price: 1.2800
Expiry time: 20:00 GMT