Binary Options Weekly Outlook: August 11 – August 15

August 11, 2014 – Weekly News

WEEKLY REPORT 11/08-15/08

EUR/USD

Last week the EUR/USD pair dropped to new 8 month low when reaching 1.3320. The pair reacted on great U.S. economic data which again supported strong economic recovery. However, on Friday we saw a big jump of Euro after a government report showed that German exports rose in June. Because the same time dollar weakened, the pair added about 90 pips and finished on 1.3410 level. This week we do not expect the uptrend to continue. On Tuesday the ZEW Economic sentiment will be released and is expected to show the lowest number since December 2012. On Wednesday we should pay attention to the U.S. Retail sales data but more important will be Thursday’s release of German GDP, European Central Bank Bulletin and Euro inflation data. The pair might fell and test the 1.3300 level soon if the EU data comes below expectations.

USD/JPY

The USD/JPY pair started last week slightly above 102.50 and finished on 102.00. The pair moved lower on the back of geopolitical tension between Russia and Ukraine which seemed to escalate last week and Yen as a safe-haven asset benefited from that situation. However, on Friday we saw that the tension decrease pulling the pair up again. This week on Tuesday the Japanese Monetary Policy Meeting Minutes and GDP will be announced and should increase the volatility of the pair. On Wednesday we should keep an eye on the U.S. Retail sales as well as on Japanese Core Machinery Orders. On Friday the U.S. PPI data are expected to slightly increase (by 0.1%) and if the reading comes above prediction we should see some upwards pressure.

GBP/USD

Last week the GBP/USD seemed to reverse the longer term bearish sentiment but by the end of the week the pair fell as low as 1.6765 which is the lowest value since June 10. For past 12 month (from July to July) the pair rose from 1.4800 to almost 1.7200. With such an increase we might be now in price correction period which might continue to 1.6630 level where is found 23.60% Fibonacci resistance. Lately the U.K. economy has been releasing slightly weaker data than estimated and therefore the investors are taking the profits out. This week we should pay attention to the U.K. labor data (Claimant Count Change and Unemployment Rate) which are coming out on Wednesday. On Friday the U.K. Second Estimate GDP will be posted.

GOLD

The price of Gold started last week with slight decrease to $1,285/ounce but on Wednesday we saw the price breaking through the resistance and reaching almost $1,310/ounce. The announcement of Russian president Putin about banning U.S. and EU goods and food brought some nervousness which gold reflected. The price then peaked to $1,322/ounce on the back of Obama’s agreement about an airstrike of Iraq but when testing its second resistance lost momentum and fell. New week started around $1,306/ounce as market weighting the geopolitical tension and see it as weaker. With that outlook the price might return back below $1,300/ounce.

Economics events (GMT time):