Binary Options Weekly Outlook: August 04 – August 08
August 4, 2014 1:40 pm
August 4, 2014 – Weekly News
WEEKLY REPORT 04/08-08/08
EUR/USD
Last week the EUR/USD fell to its lowest level since November 2013 after a range of economic data. The Eurozone CPI was lower than expected and increased by its slowest pace since 2009. This added more pressure onto the European Central Bank to implement tools to spike inflation. Before Friday’s Non – farm Payrolls data, the pair dropped to 1.3370. However, the U.S. labour data was not so strong and consequently the pair returned to 1.3440.
This week we should watch the U.S. ISM Non-Manufacturing PMI data (on Tuesday). More importantly, however, the European Central bank minimum bid rate release will be released on Thursday and will be followed by a press conference. We should expect all currencies to decrease before this meeting as the market is now expecting additional stimulus will be introduced.
USD/JPY
The USD/JPY increased significantly during the past week. Within three days, the pair rose from 101.7 to 103.05. However, on Friday the pair dropped to 102.50 as the U.S. labour data disappointed the market. The uptrend was caused by both currencies; the U.S. dollar was strengthening while the Japanese Yen weakened after the Japanese Industrial Production shrank more than expected (-3.3% instead of -1%).
This week the pair will be influenced mainly by the U.S. market but on Friday we should watch the Japanese Monetary Policy Statement which might provide insight for the future of the BoJ monetary policy.
GBP/USD
Last week the GBP/USD continued its downtrend and decreased from 1.7000 to 1.6820, which is by almost 200 pips. The pair suffered from disappointing UK data when the Manufacturing PMI declined to its lowest level in a year. Despite most pairs rising after Friday’s NFP, the GBP/USD remained low.
This week we expect a lot of volatility, especially on Thursday when the Official rate for the U.K. will be announced. .We should also pay attention to the U.K. Construction PMI (on Monday) and Manufacturing Production (on Wednesday).
GOLD
Last week, Gold started around $1,305/ounce but dropped to $1280/ounce on Thursday before the U.S. labour data was released. As U.S. data came out and speculation of strong data disappeared, the price climbed and finished the week at $1,293.5/ounce.
Gold has recently been declining as second quarter earnings reports from the U.S. stock market have spurred demand for riskier assets. The metal usually benefits from geopolitical tension but we can see traders seem to be overlooking the situation in Ukraine and the Middle East.
This week we should watch the U.S. Non-Manufacturing PMI and Factory Orders which will be released on Tuesday.
August 4, 2014 – Weekly News
WEEKLY REPORT 04/08-08/08
EUR/USD
Last week the EUR/USD fell to its lowest level since November 2013 after a range of economic data. The Eurozone CPI was lower than expected and increased by its slowest pace since 2009. This added more pressure onto the European Central Bank to implement tools to spike inflation. Before Friday’s Non – farm Payrolls data, the pair dropped to 1.3370. However, the U.S. labour data was not so strong and consequently the pair returned to 1.3440.
This week we should watch the U.S. ISM Non-Manufacturing PMI data (on Tuesday). More importantly, however, the European Central bank minimum bid rate release will be released on Thursday and will be followed by a press conference. We should expect all currencies to decrease before this meeting as the market is now expecting additional stimulus will be introduced.
USD/JPY
The USD/JPY increased significantly during the past week. Within three days, the pair rose from 101.7 to 103.05. However, on Friday the pair dropped to 102.50 as the U.S. labour data disappointed the market. The uptrend was caused by both currencies; the U.S. dollar was strengthening while the Japanese Yen weakened after the Japanese Industrial Production shrank more than expected (-3.3% instead of -1%).
This week the pair will be influenced mainly by the U.S. market but on Friday we should watch the Japanese Monetary Policy Statement which might provide insight for the future of the BoJ monetary policy.
GBP/USD
Last week the GBP/USD continued its downtrend and decreased from 1.7000 to 1.6820, which is by almost 200 pips. The pair suffered from disappointing UK data when the Manufacturing PMI declined to its lowest level in a year. Despite most pairs rising after Friday’s NFP, the GBP/USD remained low.
This week we expect a lot of volatility, especially on Thursday when the Official rate for the U.K. will be announced. .We should also pay attention to the U.K. Construction PMI (on Monday) and Manufacturing Production (on Wednesday).
GOLD
Last week, Gold started around $1,305/ounce but dropped to $1280/ounce on Thursday before the U.S. labour data was released. As U.S. data came out and speculation of strong data disappeared, the price climbed and finished the week at $1,293.5/ounce.
Gold has recently been declining as second quarter earnings reports from the U.S. stock market have spurred demand for riskier assets. The metal usually benefits from geopolitical tension but we can see traders seem to be overlooking the situation in Ukraine and the Middle East.
This week we should watch the U.S. Non-Manufacturing PMI and Factory Orders which will be released on Tuesday.
Economics events (GMT time):
4.8.2014
5.8.2014
6.8.2014
7.8.2014
8.8.2014
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