Binary Options Weekly Outlook: April 6- April 10

April 6, 2015 – Weekly News

WEEKLY REPORT 6/4-10/4

EUR/USD

Last week the EUR/USD erased almost 200 pips and dropped towards 1.0700. Losses were seen as speculation began ahead of Friday’s U.S. labor data. The first piece of pre-data came out last Wednesday and pulled the pair higher as the figure was lower-than expected. However, before the actual NFP release the pair returned close to 1.0900. The data was disappointing and showed 126K newly employed people, below the expected 246K; this pulled the pair up to 1.1025. The unemployment rate remained at 5.5% and the Average Hourly Earnings increased by 0.3%.

The impact of the data was not fully priced in as many markets were closed for Good Friday. We should therefore expect high volatility during the American session. European markets will remain closed for Easter Monday. Traders should watch the U.S FOMC Monetary Meeting Minutes report which will be released on Wednesday.

GBP/USD

Last week, the GBP/USD traded sideways between 1.4750 and 1.4875. Volatility was low as economic data from both countries (the U.S. and U.K.) came out below expectations. In addition, the outcome of the upcoming British elections is uncertain with no clear winning party. However, on Friday, the U.S. Non-farm payrolls data came out and showed half the expected figure. This pushed the pair through its resistance and it reached a high of 1.4900.

This week should start quietly as the U.K. market will be closed for Easter observations. However, later on Monday, U.S. ISM Non-Manufacturing data will be released and FOMC member, William Dudley, will speak about the economic outlook so volatility should slowly pick up. On Tuesday, U.K. Services PMI data will be published. On Wednesday, watch the U.S. FOMC Meeting Minutes and on Thursday, the U.K. Official Bank rate will be announced.

GOLD

Last week, Gold reversed its previous bearish sentiment and increased from $1,180/ounce to $1,217/ounce. The price climbed following weaker than expected U.S labour data which threatened the possibility of an interest rate hike in the U.S. However, despite the fact that the data came out at the lowest figure since February 2014, the Fed will search for additional information before making a conclusion.

It is possible that the data could be upgraded afterwards. For example, in January, the actual Non-farm payroll figure was upgraded by 77K. This week we should watch the U.S. FOMC Meeting Minutes which should create great trading opportunities.

Economics events (GMT time):