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GBP/USD trading - US jobless claims - 23 Feb 2017

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GBP/USD trading chart 21 Feb 2017
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FOMC minutes disappointed investors

In the yesterday's FOMC minutes, investors didn’t see a hint of a three-fold rate increase, moreover, they can see only one increase this year. FOMC also focused on the personal consumer expenditures index(PCE), rather than the consumer price index (CPI).

Obviously, the Fed finds new reasons not to raise the rates

And apparently, the Fed can find new uncertainties each time, particularly after the publication of Donald Trump tax reform. The Committee also noted that the level of employment depends not only on monetary policy but also on the non-monetary factors, so this indicator can’t be the reason for the change in monetary policy. This statement sounds particularly easily if to remind that an increase of employment directly spelled out in the mandate of the Fed.

In the US, the existing home sales amounted to 5.69 million against the forecast of 5.54 million. The next macroeconomic indicators are expected to be positive. The number of initial jobless claims is expected to be 242K vs. the previous 239K. Tomorrow, the new home sales are expected at 570K vs. the forecast of 536K. The Michigan consumer sentiment is expected to increase from 95.7 to 96.1.

How we trade binary?

We would buy Call options if the pair GBP/USD goes above 1.2472. This scenario would be invalidated if the pair goes below 1.2415 in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD

Direction: Call

Target price: 1.2472
Expiry time: 21:00 GMT

Comments

Koos's picture

Signal for Thursday is good.
What happened, no signal today (Friday)?

Koos
Toni H.'s picture

No, we are back on Monday :)

Toni H.

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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