Thursday was terrible for the British pound
First, industrial production showed a decline of -0.5% against the expectations of -0.3% despite the fact that the February figure was lowered from -0.7% to -0.8%. The manufacturing industry showed a decrease of 0.6% against the forecast of -0.2%. The construction output fell by 0.7%, the forecast was +0.3%.
The main event of the day was the news from the Bank of England
The monetary policy remained unchanged, but the forecast for the economy was lowered - for the GDP from 2.0% to 1.9% for the current year (in the case of "soft Brexit"). The trade balance showed a negative balance of -13.4 billion pounds against the expectations of -11.8 billion.
In the US, the Core Producer Price Index (Core PPI) rose by 0.4% in April, against the expectations of 0.2%. The total PPI added 0.5% against the expectations of 0.2%. The weekly initial jobless claims showed 236K against the forecast of 245K.
Today, the main news is the US retail sales data. The April forecast is 0.6% against the previous decline by 0.2% in March. The consumer price index is expected to increase by 0.2% against -0.3% earlier. The Core CPI is forecasted at 0.2% against -0.1% in March. In March the business inventories may increase by 0.1%. The Michigan consumer sentiment is expected to remain unchanged, 97 points. Thus, the US data is more serious and we are waiting for the strengthening of the US dollar.
How we trade binary?
We would buy Call binary options with 20:00 GMT expiry if a one hour candle closes above the 1.2927 level. If our first target is not reached and the price goes below 1.2865, the first scenario would be invalidated. We would buy Put options if a one hour candle closes below the 1.2865 level.
Target price: 1.2927
Expiry time: 20:00 GMT