Switzerland - Producer Price Index (PPI)
On Monday, at 08:15 am GMT, the Swiss Federal Statistical Office will release the Producer Price Index (PPI) for the previous months, which measures changes in the prices of goods and raw materials purchased by Swiss manufacturers over the past month.
Binary options traders consider the Swiss Producer Price Index (PPI) to be a leading indicator of consumer inflation because any significant increase in raw materials is passed on to buyers of finished products by manufacturers. Thus, an increase in the producer price index indicates an increase in prices at the consumer level, which contributes to the overall national inflation.
Last month, the Swiss Producer Price Index was set at 0.1% and expectations for August were for a 0.2% decline.
USA - Building Permits
On Tuesday, at 01:30 pm GMT, the US Census Bureau released Building Permits, 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 construction work in the future, and construction work usually increases the demand for products and services in the local area, so binary options traders view this data as a leading indicator of general economic activity in the country.
Last month, about 1.15 million building permits were issued, and this month, analysts expect that number to be around 1.16 million.
Trading recommendations for the USD/CHF currency pair
Over the past two months, the price of the USD/CHF has remained in a narrow range between the levels of 0.9520 and 0.9920. The range appears to have become narrower over the past two weeks, especially, after the USD/CHF price bounced from the resistance near the 0.9920 level and formed a bearish pin bar on July 27th.
Last week, the USD/CHF reversed once again after forming a bullish pin shape twice in a row, which failed to break above the intermediate resistance level around 0.9765.
The number of building permits is expected to remain somewhat flat over the past month, and the Swiss PII figure is expected to decline by 0.2%. So the fundamental prospects for the US dollar / The Swiss Franc is likely to remain bullish this week. Therefore, if the USD/CHF breaks above the high of two pins last week, which is at 0.9765, it is likely to attract additional bullish momentum in the market.
Under these circumstances, it would be advisable for binary options traders to consider placing a buy order for the USD/CHF currency pair with binary options brokers as soon as the price breaks above the 0.9765 level 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]