Switzerland – Unemployment Rate
Tomorrow, at GMT 5:45 a.m., the State Secretariat for Economic Affairs (SECO) will release the unemployment, which measures the percentage of the total work force who were actively seeking employment opportunity during the previous month.
The unemployment rate is usually considered as a lagging economic indicator. However, it indicates the future consumer spending in the economy as people with jobs and steady paychecks tend to spend more. Hence, binary options traders consider this to be an important indicator of the overall economy.
During the last, the Swiss unemployment rate came out at 3.3% and the forecast for this month is also set at 3.3%.
Eurozone – German Trade Balance
Later, at GMT 6:00 a.m., the Destatis will release the monthly trade balance figure, which measures the difference in value between net import and export of goods over the past month.
The demand for export in Germany is directly correlated with the demand for the Euro, because the German economy makes up a large portion of the overall Eurozone economy. Hence, binary options investors analyze the monthly trade balance in order to gauge the strength of the EURO against other major currencies.
Last month, the German trade balance figure came out at -22.0 billion and the forecast for September is currently set at 21.8 billion.
Trade Recommendation for the EUR/CHF
As the German trade balance is expected to come out slightly lower compared to the previous month, and the Swiss unemployment rate is expected to remain same as August, the fundamental outlook for the EUR/CHF would be moderately bearish over the next day or two.
Having said that, given that the EUR/CHF has been trending upwards since the formation of a bearish inside bar on April 20, 2015, the likelihood of the pair to continue the uptrend is more likely.
In fact, since April 20, the EUR/CHF has formed three uptrend lines and all of these trend lines are currently valid.
The EUR/CHF is currently trading near the psychological pivot zone near the 1.0900 and if it closes above this level this week, the price would likely to move further up.
Hence, it would be recommended that binary options traders consider placing a CALL order for the EUR/CHF with their binary options brokers, once the price closes above the 1.0900 level.
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