The US dollar continues to strengthen against the pound.
At the same time the dollar's growth is supported by positive factors (economic statistics, the oil quotations, promises of Trump), and negative factors (collapse of the government bonds market, the expectation of a trade war with China), as in times of crisis the US dollar is always getting stronger.
It is worth to notice the rapid growth of the yields on the US government bonds.
Over the past five days, the yield on 10-year securities rose from 1.82% to 2.25%. The growth creates the preconditions for inflation, the inflation is forcing the Fed to raise the rate. The raising rates will enhance the growth of yields on bonds.
Today, the US is to publish data on retail sales for October, it is expected to grow by 0.6%. Also, we will get the import and export indices. In the September the business inventories are expected to increase by 0.2%.
The UK will present data on CPI, PPI, RPI. The CPI is expected at 1.1% vs. the previous 1.0%. The PPI is expected to growth by 2.1% against the previous 0.0%. It’s also worth to pay attention to the inflation report hearings.
How to trade binary
The continuation of upward movement is possible after the breakdown of 1.2585, where 1.2670 is the first target, in the range of 1.2670 - 1.2727- short-term upward movement, as well as the consolidation. The short-term downward movement is possible in the range of 1.2491 - 1.2436.
We would buy Put options from the current level 1.2485.
Target level: 1.2485
Expiry time: 21:00 GMT