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USD/JPY binary signal - U.S. Building Permits - 19 Jul 2017

Signal details
Entry Price: 
112.27
Close Price: 
111.83
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 3 ratings

The monthly United States building permits and housing starts data is expected to be released today at 12:30 GMT. According to economists polled, the U.S. building permits is expected to rise 1.2 million, while housing starts is expected to rise 1.16 million for the month of June.

Previously, building permits rose 1.17 million while housing starts increased by 1.09 million. Housing starts decreased 5.5% which marked the weakest pace of increase September last year. Another weak print could potentially keep housing starts data more subdued.

Data showed that the construction of single family dwelling units fell 3.9% while the multi-family units fell for the fifth straight month. The decline in housing starts and building permits has been baffling economists. This is due to the fact that while the United States unemployment rate is at one of the lowest levels in recent decades, the housing sector has also slowed.

According to the housing data, shortage of skilled workers was attributed as one of the reasons for the slowdown. Buying interest has remained steady however. This was evident by the fact that homebuilders had cautioned that construction sector could see a slowdown due to the limited availability of skilled workers.

Today's data is likely to remain weak, meaning that the U.S. dollar could remain subdued as a result. The housing market data is often seen as a leading indicator for the U.S. economy. Therefore another slowdown or a month with weak figures could further diminish the investor confidence in the U.S. economy.

Based on the above factors, today's binary options trade recommendation is USDJPY. The currency pair has been steadily declining and we expect this trend to continue until USDJPY finds support at 111.77.

Therefore, we purchase daily PUT options at 112.27 for a 20:00 GMT expiry time. Following the minor retracements to 112.27 we expect to see USDJPY close lower on the day.

binary options signal usdjpy 19 Jul 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. 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.