Binary Options Weekly Outlook: August 18 – August 22

August 18, 2013 – Weekly News

WEEKLY REPORT 18/08-22/08

EUR/USD
Last week, the EUR/USD pair moved sideways in a wide channel. The pair jumped to 1.3415 but then fell to 1.3350. Indecision in the market caused the sharp movements. The main event this week will be the U.S. FOMC Meeting Minutes which will be released on Wednesday. Investors are watching the Fed’s decision regarding increasing interest rates. However, it is known that the Fed will increase interest rates once the labor market conditions are stable. At the end of the week, Janet Yellen (Fed Chairman) and Mario Draghi (European Central Bank President) will speak at a conference in Jackson Hole.

USD/JPY
The USD/JPY pair increased last week from 102.00 to 102.70. The pair was mainly driven by a strong U.S. Dollar. However on Friday, there was a significant drop from the Yen’s side. The Yen reacted on geopolitical tension in Ukraine, which caused the pair to fall to 102.20. This week, there is no important fundamental data being released in Japan, so the pair may react to the U.S. market. On Tuesday, the U.S. will announce the CPI and Building Permits data. On Wednesday, traders should keep an eye on the FOMC Meeting Minutes and on Friday traders should pay attention to the Jackson Hole conference.

GBP/USD
Last week, the GBP/USD confirmed its downtrend and slid to its new four month low. The main drop was from Wednesday. First, the British Pound depreciated after the disappointing inflation report. Second, it depreciated because of dovish statements from Mark Carney (Bank of England governor). This week, there may be additional pressure on the currency, as the CPI data will be released on Tuesday. On Wednesday, the market should pay attention to the U.K. Official bank rate votes and to the FOMC Meeting minutes. The U.K. Retail sales will be posted on Thursday and should offer some trading opportunities.

GOLD

The price of gold had been ranging high last week (between $1,305 and $1,317/ounce) but on Friday fell to $1,292/ounce. The yellow metal as a safe haven asset rose on August 6 due to the fact that the geopolitical tension in Ukraine and Iraq increased. Because the physical demand had remained low we knew that any time when the tension calms down the price is going to drop significantly what happen to be on Friday. This week we should pay attention mainly to the FOMC meeting report which will give us some further information about future monetary policy steps of Fed. We should still keep an eye on the geopolitical situation as well.

Economics events (GMT time):