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.
Target price: 1.2472
Expiry time: 21:00 GMT