Binary Options Weekly Outlook: April 14 – April 18

April 14, 2014 – Weekly News

WEEKLY REPORT 14/04-18/04

EUR/USD

Last week the EUR/USD pair rose more than 1% and tried to break to 1.3900 area. The pair was driven by weaker U.S. Dollar which first suffered due to slump in U.S. stock market and then due to dovish FOMC Meeting Minutes. In the FOMC report we read that the increase of interest rates might be later than Janet Yellen hinted in her press conference on March 19^th. On Saturday evening European Central Bank president Mario Draghi was speaking in Washington D.C. and sent the Euro down. He said that despite the fact ECB is not targeting the exchange rate further appreciation would require further monetary stimulus. He is not the first official person pointing on possible threat from the stronger Euro and therefore ECB may act soon. This week will be shorter due to Easter holidays, however, we should pay attention to the U.S. Retail Sales data (Monday), EU German ZEW Economic Sentiment and U.S. Core CPI (Tuesday), EU CPI (Wednesday) and Philadelphia Fed Manufacturing Index on Thursday. Except of fundamental data there will be two speeches of Janet Yellen which we should watch. One on Tuesday and one on Wednesday.

USD/JPY

The USD/JPY pair has continued its previous bearish movement and last week touched the lowest price since March 19. The pair started last week quite bullish, however weaker U.S. Dollar sent the pair lower. Japanese Yen was in last month like on a roller-coaster. Investors expect BoJ to add monetary stimulus which depreciates the currency but tension in Ukraine is boosting the demand for safe-haven asset. Due to the fact that during the weekend the tension in Ukraine escalated again, we should be see some pressure on the price. This week except of the situation in Ukraine and U.S. data written above we should closely watch BoJ Governor Haruhiko Kuroda speaking on Wednesday and Thursday.

GBP/USD

Last week the GBP/USD jumped within first 2 days from 1.6570 to 1.6820 means 150 pips. The speculations about the U.K. Manufacturing production data were more negative and therefore once the data showed very surprising 1% increase instead of 0.3% the pair got positive momentum and climbed up. The price almost exceeded the highest price since February 16^th (1.68215) when the price reached the highest value since November 2009. However, the pair did not continue the bullish movement up and slightly reversed down finishing the week around 1.6730. This week we should pay attention to U.S. data (described in EUR/USD paragraph) as well as to U.K. CPI which will be released on Tuesday and U.K. Labor data on Wednesday. Do not forget that on Friday the British market will be closed.

GOLD

Last week the price of Gold was spurred but weak performance of stocks and by the end of the week added about $20/ounce. The bullish movement was not that strong to break through the resistance at $1,324/ounce, however this week started with a strong upside pull and peaked up to $1,329/ounce. The price is influenced by the escalating situation in Ukraine and as the tension increases we should expect the price even higher. Once the crisis calms down the price should get back down which could be other great opportunity to trade. This week we should pay attention to Janet Yellen speeches on Tuesday and Wednesday.

Economics events (GMT time):