Yesterday the pound collapsed by 130 points
The Bank of England as well as the Fed won’t raise rates in the foreseeable future. Investors began to sell after this news. But if the pound sterling, being an indicator of two global regulators began to fall the other currencies will do the same.
We believe that we saw the beginning of the US dollar strengthening yesterday
We continue to believe that the statements of Trump about the super-strong dollar were a bluff, as well as the cancellation of the Pacific Partnership. The US will enter into it with even more preferences.
In the US, the number of jobless claims decreased from 260K to 246K. In the 4th quarter, the non-farm productivity increased by 1.3% against the expectations of 1.0%.
Today the UK is to publish data on the Services PMI. The forecast is 55.8 against the previous 56.2.
The US is to publish data on non-farm payrolls. The forecast is 175K vs.156K in December. The unemployment rate is expected unchanged at 4.7%. There are the signs that the NFP will be higher than the forecast. The ISM Non-Manufacturing PMI is expected to decrease from 57.2 to 57.0, but the factory orders are expected to increase by 1%. We expect a stronger US dollar today.
How to trade binary
We buy Put options from the current level 1.2515.
Target price: 1.2515
Expiry time: 21:00 GMT