Binary Options Weekly Outlook: April 13- April 17

April 13, 2015 – Weekly News

EUR/USD

Last week the EUR/USD opened very high as the U.S. Non-farm payrolls disappointed the market and pulled the exchange rate to 1.1035. However, the bullish sentiment did not last long and as the U.S. market reopened from a 3 day weekend, the pair started to fall. Hawkish statements from FOMC members, who are usually considered to be dovish, drove the pair. For example, William Dudley stated that the interest rate could be hiked in June. The sentiment was supported by the FOMC Meeting Minutes report which was released on Wednesday. By the end of the week the pair had almost dropped 500 pips and reached 1.0565. This strong movement underlines how traders shifted their outlook for the future.

Traders should remember that Greece has not come to a debt agreement and there is a higher risk that they could run out of cash by the end of April. This upcoming week will be interesting with respect to fundamental events. On Tuesday, U.S. Retail Sales data will be released and is predicted to show the highest change in a year. On Wednesday, the European Central bank will announce their minimum bid rate; however, we do not expect any change. After the announcement, we should pay attention to the ECB Press Conference as we might hear news regarding future monetary policy steps. On Friday, both economies will release inflation data.

GBP/USD

Last week, the GBP/USD started at a one- week high and almost reached 1.5000. The British Pound benefited from negative U.S labour data which grounded the Dollar. However, the sentiment changed quickly and by Tuesday the pair had bounced off its support level at 1.4800. The change was caused by hawkish remarks from FOMC members which spurred the Dollar. The pair swung towards 1.4980 ahead of Wednesday’s FOMC Meeting Minutes report but has been falling since.

This week, the pair broke through its support level at 1.4585 and reached its lowest level since 2009. Uncertainty regarding the future political situation can be seen on the market ahead of the U.K elections and so we expect the pair to remain under pressure. In addition, traders should pay attention to Tuesday’s U.K. CPI release and U.S. Retail sales data.  Both figures may create volatility. On Friday, the U.K. Claimant Count Change and Unemployment rate will be published. The prediction is to see slightly stronger data which may help the British pound to regain some of its losses.

GOLD

Last Monday, Gold reached a 6 week high of $1,224/ounce. The price of the yellow metal was supported by disappointing U.S. Non-farm payrolls data which came out very low. However, the actual figure might be very different; next month, when April’s Non-farm payrolls data is released we may see a corrected figure. In the past, figures have been corrected by up to 70,000 and if this happens again it could push the amount back above 200,000. This opinion was supported by comments from FOMC Members and the price plunged to $1,192/ounce.

This week we should pay attention to the U.S. Retail Sales data which will be released on Tuesday and is expected to be the strongest in a year. On Friday, we should keep an eye on the U.S. CPI data. In addition, we should pay attention to speeches FOMC members.

Economics events (GMT time):