United States – The Conference Board (CB) Consumer Confidence Index
Tomorrow, at GMT 3:00 p.m., United States based Conference Board Inc. (CB) will release its consumer confidence index, which measures the changes in the level of a composite index by surveying 5,000 households in the United States.
The large sample size (5,000) of the survey makes it one of the most comprehensive research data regarding the consumer spending pattern in the country. Since consumer confidence is correlated with consumer spending, binary options investors pay close attention to the CB consumer confidence index.
Last month, the CB consumer confidence index reading came out at 98.1 and the forecast for February is currently set at 97.4.
United Kingdom – GDP Second Estimate
On Thursday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the quarter-over-quarter second estimate of the GDP, which measures the changes in the inflation adjusted value of all products and service made in the country over the past quarter.
Since GDP measures the overall productivity in the economy, the second estimate acts as a leading indicator of the actual GDP growth level. Hence, binary options traders consider the UK’s second estimate GDP (q/q) to be an important indicator of the health of the economy.
Last quarter, the second estimate GDP was at 0.5% growth and the forecast for this quarter is also set at an additional 0.5% growth.
Trade Recommendation for the GBP/USD
Although the GBP/USD remained in a downtrend for a while, the pair started a retracement move on January 21, and climbed back to the 1.4600 level at the end of January.
On February 16, the GBP/USD once again resumed the downtrend when the pair penetrated and closed below the intermediate uptrend line formed during the last upward swing.
As the rumors of Brexit have intensified in the United Kingdom, it has weakened the Pound. As a result, today, the GBP/USD price fell to as low as 1.4057 so far, which is the lowest level since 2009!
The GBP/USD found support around 1.4075 held the price so far, but if the pair closes below this level, it would likely attract additional bearish momentum this week.
Under such circumstances, it would be recommended that binary options traders consider placing a PUT order for the GBP/USD with their binary options brokers once the price closes below the 1.4075 level.
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