Binary Options Weekly Outlook: April 21 – April 25

April 22, 2014 – Weekly News

WEEKLY REPORT 21/04-25/04

EUR/USD

Last week the EUR/USD pair was moving sideways between its support and resistance with lack of volatility. The market calmed down before the Easter holidays and on Friday we barely had some opportunity to trade. However new week comes with new data. On Monday due to the fact that U.S. and Canada markets were opened, the U.S. Dollar advanced pushing the EUR/USD pair down to test its support. We can see some signs of labor market recovery which positively affecting the dollar. This week we should pay attention to EU and U.S. Flash Manufacturing PMI (both on Wednesday), German Ifo Business Climate and Core Durable Goods Orders (on Thursday). On Thursday the European bank president Mario Draghi is giving a speech in Amsterdam and any hints about future fiscal politic may influence the Euro.

USD/JPY

The USD/JPY pair finally reversed its bearish sentiment last week and started to recover. The pair finished last week on 102.45 level adding 1.03% in total. As we wrote in previous weekly reports the Japanese central bank is expected to add another monetary stimulus by end of June. That makes Yen less wanted and pulling the pair up. With improving U.S. labor market we should be able to see the pair even higher soon. This week except of U.S. data described above we should keep an eye on the Tokyo and National Core CPI which will be released on Thursday. The Tokyo Core CPI is expected to be the highest (2.8%) since 1992 due to the April tax increase. If the data confirms the increasing inflation we should expect some strengthening of Yen.

GBP/USD

Last week the GBP/USD climbed to its highest value since 2009 and slightly exceeded 1.6840 level where reversed. The British pound benefited from fabulous labor data when the unemployment rate fell to its five-year low. The pair finished the week slightly below 1.6800 where has been ranging since that. This week we should expect higher volatility mainly on Wednesday when the U.K. MPC Asset Purchase Facility Votes and MPC Official Bank Rate Votes will be released together with U.S. Flash Manufacturing PMI and U.S. New Home Sales. The British pound will face higher volatility also on Friday once the U.K. Retail Sales comes out.

GOLD

After previous 2 weeks of growth last week the price of Gold slid down. The price fell from $1,331/ounce to Friday’s $1,294/ounce. The mood reversed as the tension in Ukraine calmed down as well as the U.S. stock market reversed its bearish movement. The price dropped lower on Monday despite the fact that most of the market remained closed due to Easter holidays. The price declined to $1,281/ounce. We might see this week some price correction after such a decrease but if the U.S. data which are coming this week supports the positive economic outlook, the price might drop even lower. We should still pay attention to the situation in Ukraine. Any possible escalation would spurred the price up.

Economics events (GMT time):