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USD/CAD binary signal - U.S. consumer confidence - 29 May 2018

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Expiry Time: 
21:00 GMT
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The Conference Board of the U.S. will be releasing the consumer confidence data for the month of May. Economists polled expect consumer confidence to remain mostly unchanged at 128.2 during the month. In April, consumer confidence was reported at 128.7. The data will be released at 15:000 GMT.

In April, the consumer confidence index touched the second highest level since 18 years indicating that the U.S. economy was continuing to expand amid increased consumer spending on big ticket items. The consumer confidence report is a leading indicator of the U.S. consumer spending data and also gives early insights into the economic activity.

In April, consumer confidence recovered moderately to 128.7 after capping a two month winning streak of gains until March.

The report showed that U.S. consumer rates business conditions and the labor market favorably. U.S. consumers were seen to be broadly optimistic over the next six month period which increased from 23.2% to 24.5% in April. The percentage of respondents who believed that the business conditions would worsen fell from 10.2% in March to 9.7% in April.

The expectations for the May report is expected to remain largely unchanged with the index still hovering near all time highs. The report comes ahead of the FOMC meeting due in June. Market expectations point to a U.S. rate hike at next month's meeting.

Today's binary trading signal is USDCAD, the currency pair has been pushing higher led by a recent slump in oil prices. The recent uptick in prices however suggests that the upside momentum might be fading.

Therefore, we are looking to purchase daily PUT options at 1.3002 for a 21:00 GMT expiry time. We expect to see USDCAD posting a moderate rally ahead of close reversing near 1.3002 and closing lower on the day.

binary trading signal usdcad 29 may 2018

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. 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. All risks and coasts associated with online trading are your responsibility.