USA - Building Permits
Tomorrow, at 13:30 GMT, the US Census Bureau will release Building Permits, the annual number of new building permits for the residential real estate sector issued over the past month. Since obtaining a building permit usually indicates future construction, and construction work usually increases the demand for products and services in the local area, binary options traders view this data as a leading indicator of overall economic activity in the country. Last month, 1.14 million building permits were issued, and this month, analysts expect this number to be around 1.17 million.
Eurozone – German Flash Manufacturing PMI
Later this week, on Friday, at 08:30 GMT, Markit will release the German Flash Manufacturing PMI, which measures the level of the Diffusion Index based on a survey of about 500 purchasing managers in the country.
Binary options traders look at the flash manufacturing PMI number to be a leading indicator of the German economic climate since PMIs have insight into business conditions such as employment, production capacity and most new orders as well as the inventory situation. Last month, the German Flash Manufacturing PMI came in at 51.7 and expectations for this month are now set at 51.5.
EURUSD Trading Recommendations
Over the past few weeks, EURUSD has been hovering between 1,1150 and 1,1350. Last week, EURUSD once again tried to break below the support level around 1,1150, but so far failed to do so.
Earlier today, the EURUSD price rebounded to the 1,1150 level, and currently, it is trading about 20 pips above the opening price.
As the German Flash Manufacturing PMI and the US Building Permits PMI are expected to come close to last month's figures, the fundamental outlook for EURUSD is likely to remain neutral, which means price action will remain at the same level.
However, given how strong the support is around the 1,1150 level, so if the price breaks below this level, it is likely to attract additional bearish momentum in the market, which may present an opportunity for the traders.
Under these circumstances, it would be advisable for binary options traders to consider placing an order PUT EURUSD with binary options brokers as soon as the price rises to close below the 1,1150 level on the daily time frame.
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