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GBP/USD trading - US PPI - 14 Mar 2017

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GBP/USD trading chart 14 Mar 2017
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Tuesday will be troubled

The expectations of a rate hike at tomorrow's Fed meeting are so strong not only in the US but also in the world that they will determine the mood of investors today. However, it is believed that Janet Yellen will raise the rate in May, not in March.

In the UK, the separation processes are resumed

The British pound grew by 70 points yesterday, even despite the possible initiation by Teresa May of the Brexit process today. That is, she can use the 50th article of the Lisbon Treaty on the European Union. In the UK, Ireland also intends to secede after Scotland. In Scotland, the first minister Nicola Sturgeon promised to launch the procedure for a new referendum on separation next week. The voting is scheduled for the autumn.

Today, the US NFIB small business optimism index is expected to increase from 105.9 to 106.1. The producer price index (PPI) is expected to grow by 0.1%. The Core PPI can add 0.2%.

How we trade binary

We would buy Call options if the pair GBP/USD goes above 1.2216. This scenario would be invalidated if the pair goes below 1.2145 in which case we would go for Put options with the end of the expiry.

Asset: GBP/USD
Direction: Call
Target price: 1.2216
Expiry time: 21:00 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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