Sorry, you need to enable JavaScript to visit this website.

USD/JPY binary signal - U.S Core PCE and Personal Income Data - 30 Oct 2017

Signal details
Entry Price: 
113.50
Close Price: 
113.16
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 7 ratings

The markets open to a quiet trading day ahead of an action packed week. Focus turns to the economic data from the United States that includes the core PCE data. According to economists polled, the personal consumption expenditure or core PCE is expected to rise 0.1% on a month over month basis in September.

This is expected to push the core PCE to an annual rate of 1.3%, unchanged from the previous month. With the core PCE being one of the key metrics used by the Federal Reserve, any deviation from the forecast could spell into what the Fed might do in December.

Besides the core PCE data, other main data points include the U.S. personal spending and personal income. Both these measures, which shows the spending and income levels among U.S. households is expected to increase. Personal spending is forecast to rise 0.8%, accelerating from 0.1% increase previously. Meanwhile, personal income is also forecast to rise 0.4%, doubling from the 0.2% increase registered the month before.

The data could potentially show any possible increase in inflation in the coming months. It also comes ahead of the Fed's monetary policy meeting that is due later this week. No changes are expected from the Federal Reserve this week but the central bank is expected to give its forward guidance.

With the Fed previously signaling its plans for hiking interest rates in December, this week's FOMC meeting will gain prominence. However, with the PCE data and the personal spending and income being released ahead of the Fed's meeting, that data could have a significant impact on the FOMC's forward guidance this week.

The U.S. dollar has managed to rise slightly following last week's data. However, the bias remains mixed. Based on the above, today's binary trading is USDJPY.

The currency pair closed last Friday on a bearish note and we expect the declines to extend to 113.00. Therefore, we would purchase daily PUT options at 113.50 for a 21:00 GMT expiry time. We expect the USDJPY to briefly pull back before closing lower on the day.

binary options signal usdjpy 30 Oct 2017

Comments

Toni H.'s picture

USDJPY posted strong declines as price continued to fall through the day resulting in a bearish close at 113.16 by end of day for 21:00 GMT. Following our PUT signal at 113.50, USDJPY triggered the trade which closed in the money. The declines in the USDJPY came about on a quiet day as developments included the potential announcement of the Fed chair nominee by President Trump. The political developments in White House saw Trump's campaign manager pleading not guilty to charges of freshly discovered ties with Russia.

Toni H.

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.