United Kingdom - Consumer Price Index
Today, at the hour 09:30 GMT, the UK Office of National Statistics released the year on year Consumer Price Index (CPI) which measures changes in the price of goods and services acquired by consumers.
Since the CPI primarily measures the level of inflation in an economy, the data is seen by US binary options investors as one of the leading indicators of overall economic health.
Last month, the UK CPI rose by 0.3%, and this month expectations are set at 0.4%. However, the actual number came in slightly better than the market had expected, at 0.5%.
USA - Building Permits
Later, at am GMT 13:30, the US Census Bureau released the Building Permits number, an 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 work, construction work usually increases the demand for products and services in the local area, so binary options traders consider this data as a leading indicator of the overall economic activity in the country. Last month, about 1.14 million building permits were issued, and this month, analysts expect that number to reach about 1.15 million. The actual number came out to be exact at 1.15 million.
Trading recommendations for the GBP/USD currency pair
After falling around 2,200 pips since Brexit, the GBP/USD currency pair has found Finally sustainable support around 1.2800 on July 6th. Since then, the GBP/USD has rebounded around 675 points, finding resistance around 1.3475. However, after forming a double top pattern on the daily chart, it seems that the pair has resumed the bearish trend for the time being.
The UK Consumer Price Index has also improved over the past month, and will Most likely by identifying the fundamental bullish outlook for the GBP/USD currency pair. Since the downtrend in June was so strong, even a small improvement in inflation may not be enough for the pound to turn the tables this week.
The GBP/USD is currently trading near the short term pivot area last week around 1.3100, if the pair closes below this level, it will definitely have the ability to go further from here. Under these circumstances, it would be advisable for binary options traders to consider placing a PUT or SELL order on the GBP currency pair. / USD with binary options brokers as soon as, when close The price is below 1.3100 on the daily chart[featured feattitle='Recommended Binary Options Broker: IQ Option' site='IQ Option' ]IQ Option It is the best broker for binary options this month. You can see the evaluation of IQ Option[/featured] [featured feattitle='eToro' site='eToro'] eToro Established in 2006 by Professional Traders, it is the world's leading social trading network today with over 4,500,000 registered traders. [/featured]