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USD/JPY binary signal - FOMC meeting minutes - 11 Oct 2017

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Expiry Time: 
20:00 GMT
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The U.S. Federal Reserve will be releasing its meeting minutes today at 18:00 GMT. The meeting minutes will be from the September FOMC meeting. Investors and traders will be closely scrutinizing the meeting minutes for further clues on the Fed's rate hike plans.

In September, the FOMC meeting saw the officials leaving interest rates unchanged. The central bank also signaled that it will start its balance sheet normalization from October. This is expected to start at the rate of $10 trillion in mortgage-backed-securities as well U.S. Treasuries.

For the markets, the FOMC meeting minutes will likely signal that officials will proceed another rate hike in December. In September when this news was announced, the markets were quickly re-pricing the rate hike prospects. Earlier, investors scaled back their bets on a December rate hike following a weak patch of economic data.

However, in the recent months data showed that the U.S. economy was starting to pick up pace again. This started with an upward revision to the second quarter GDP. However, last week data showed that the official nonfarm payrolls data for September turned out weaker than expected with the U.S. economy losing jobs.

Yet, despite the distorted data the unemployment rate fell by 0.2 percent points to 4.2% with also a pick-up in wages coming out strongly. Later this week, the inflation data for the week is expected to show that consumer prices will rise above 2% which is the Fed's 2% inflation target rate.

Officials in the past few weeks also spoke coming out hawkish on rates outlook. Therefore, today's FOMC meeting minutes are expected to bring some volatility to the markets.

Based on the above, today's binary options signal is USDJPY. The U.S. dollar was seen posting some consolidation near key levels. Over the past few weeks, the USDJPY was seen stuck near the resistance level of 113.00 without any clear direction in place.

Therefore, we recommend purchasing daily CALL options near 112.25 for a 20:00 GMT expiry time. After posting some declines, USDJPY is likely to attempt another test towards the resistance level thus possibly closing higher on the day.

binary options signal usdjpy 11 Oct 2017

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.