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USD/JPY binary signal - U.S. Final GDP - 28 Sep 2017

Signal details
Entry Price: 
112.67
Close Price: 
112.43
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 4 ratings

The final estimates for the second quarter ending June will be released today by the U.S. department of commerce. According to the economists polled, many expect to see the U.S. gross domestic product expanding at a pace of 3.0% in the third quarter.

This puts the final GDP for Q2 unchanged at 3.0% from the second estimates. The U.S. economy managed to expand in the third quarter led by a modest boost in household consumption and spending. Although the GDP was initially reported at a weaker print, this was quickly revised higher to show a 3.0% increase on a quarterly basis.

On a year over year basis, the U.S. economy was seen expanding at a pace of 2.2% for the quarter ending June. This marks a fourth quarterly expansion on a consecutive basis. Besides the GDP numbers, the U.S. core PCE prices data will also be released later this week. This is an important indicator for the Fed which views the core PCE as a more accurate reflection for inflation.

U.S. inflation stands at 1.4% on a year over year basis currently. For the quarter the core PCE is expected to rise 1.0%. No changes or revisions are expected to the personal consumption and spending figures.

The market reaction to the GDP and PCE data today is likely to be muted with the data reflecting on the past quarter. So far, the current theme in the market has been the Fed's goal of hiking interest rates.

Earlier this week, the Fed chair Janet Yellen gave a speech. She came out dovish noting that the central bank might have overstated the strength of the labor market including wages and inflation as well. She however maintained that interest rate hikes were appropriate.

Based on the above today's binary options trading recommendation is USD/JPY. The currency pair has maintained the gains over past few weeks with price currently attempting to breakout higher.

Therefore, we are looking to purchase daily PUT options in USDJPY for 20:00 GMT expiry time. We expect price action to post a correction below 112.67 which will see prices posting a pull back to the main support level at 110.00 region and potentially closing lower in the day.

binary options signal usdjpy 28 Sep 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.