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GBP/USD trading - US Federal budget balance - 10 May 2017

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GBP/USD trading chart 10 May 2017
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The US provided positive data on Tuesday

In the US, the NFIB Small Business Optimism declined from 104.7 to 104.5 against the expectation of 104.0. The wholesale inventories increased from -0.1% to 0.2% in March. The JOLTS Job Openings increased from 5.68 million to 5.74 million in March.

The members of the Federal Reserve endorse a rate hike

At the speech at the University of California, the head of the Federal Reserve Bank of Kansas City, Esther George, strongly advocated for an early rise the rate and the need to reduce the balance of the Fed. On Monday, Loretta Mester (FRB Cleveland) supported the rate hike too.

The main event of the day could be the publication of the US federal budget for April. The forecast is 175.0 billion dollars. The revenue of the budget is related to the receipt of annual tax payments, but all optimism is that this month may become the largest volume in the last 10 years. The import prices are expected to grow from -0.2% to 0.2%.

How we trade binary?

We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2972 level. If our first target is not reached and the price goes below 1.2910, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2910 level.

Asset: GBP/USD
Direction: Call
Target price: 1.2972
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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