Switzerland – Trade Balance
On Tuesday, at GMT 6:00 a.m., the Swiss Federal Statistical Office will release the monthly trade balance figure, which measures the difference in value between net import and export of goods over the past month.
Since the demand for export is directly correlated with the demand for the Swiss Franc, binary options traders analyze the monthly trade balance in order to gauge the strength of the CHF against other major currencies.
Last month, the Swiss trade balance figure came out at 3.74 billion and the forecast for September is currently set a much lower figure compared to August, at 2.97 billion.
United Kingdom – Public Sector Net Borrowing
Later in the morning, at GMT 8:30 a.m., the UK’s Office for National Statistics will release the public sector borrowing figure that measures the difference in value of the spending and income of the public corporations as well as the central government of the UK and other local governments during the last month.
A positive public sector borrowing figure would indicate a budget deficit and a negative figure would indicate a budget surplus. Hence, a negative figure is usually taken as good news for the British Pound.
Last month, the UK public sector borrowing figure came out at -$2.1 billion, and the forecast for this month is set at a much higher figure, at $8.7 billion.
Trade Recommendation for the GBP/CHF
Although the GBP/CHF price broke below the uptrend line on August 21, 2015, the downturn did not last for long and soon the price started a retracement move back towards the uptrend line.
For the last two weeks, the GBP/CHF has been range bound and the price consolidated within 1.4900 and 1.5100 levels.
However, last Friday, the GBP/CHF formed a Bullish Outside Bar (BUOB) that indicates additional bullish momentum in the market.
Moreover, as the Swiss Trade Balance figure is expected to come much lower compared to last month, there would likely additional bullish pressure on the GBP/CHF price this week.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the GBP/CHF with their binary options brokers, if the price closes above the 1.5100 level.
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