United States – Producer Price Index
On Tuesday, at GMT 12:30 p.m., the US Department of Labor will release the Producer Price Index (PPI) figure. It measures the changes in the price of products and services bought by manufacturers and service providers in the country.
The higher cost of production is usually passed on to the consumers. So, a rise in the producer price index indicates future inflation. Hence, this data is vital for binary option trading as it is used by binary options investors as a leading indicator of the overall US economy.
Last month, the US month-over-month PPI increased by 0.2%. It indicated inflationary pressure on the economy. Analysts are expecting that this month it will increase at a lower rate, by 0.1%.
Canada – Building Permits
On Tuesday, at GMT 12:30 p.m., Statistics Canada will publish the monthly Building Permits figure. It measures the changes in the total number of new permits issued for constructing new premises in the country.
Building permits are mandatory to start building construction. So, the number of new permits acts as a leading indicator of the future construction activity in the country. Also, binary options traders consider that new constructions help energize the economy, as new buildings require materials from many other industries.
Last month, the amount of new Building Permits grew by as much as 5.6%. If this trend continues, it will like have a bullish effect on the Canadian Dollar.
Since forming a pin bar on January 31, the USD/CAD remained bullish and climbed up by around 865 pips. However, after reaching the 1.3100 level, it formed a tentative Doji bar and turned bearish. On March 25, the USD/CAD broke below the uptrend line. Last week, it fell sharply, but found support near the 1.2750 level.
The US Producer Price Index growth is likely to drop from 0.2% to 0.1% this month. On the other hand, analysts are expecting the Canadian building permits to grow as it grew 5.6% last month. We believe it would set a bearish fundamental outlook for the USD/CAD this week. Therefore, if the USD/CAD closes below the support near 1.2750, it would likely attract additional bearish momentum in the market.
Hence, US binary options traders should look out for trading opportunities below this major support level around 1.2750.
The regulatory measures from central banks around the world continued last week. The Reserve Bank of India (RBI) announced that banks in India will no longer allow Indians to buy cryptocurrencies. The RBI announced that entities regulated by them will not deal with or provide services to any Indian residents dealing with crypto or ICOs.
Even before the RBI announcement, the BTC/USD was mostly trading with tight range between 11,750 and 5,550.
The latest blow from the RBI will make it harder for over a billion people in India to participate in bitcoin trading. Hence, we believe it will have a bearish effect on the BTC/USD price.
Hence, US bitcoin traders should look out for trading opportunities below this major support level around 5,550.