Binary Options Weekly Outlook: February 10 – February 14

February 10, 2014 – Weekly News

WEEKLY REPORT 10/02-14/02

EUR/USD

Last week the EUR/USD pair strengthened by 1.11%. The pair started last week on 1.3480 and moved sideways till Thursday when the last data before Non-farm payrolls came out under estimation. The same moment Mario Draghi (European Central Bank president) was speaking and due to the fact that ECB did not cut the interest rates the Euro moved up. On Friday the actual Non-farm payrolls showed another very low number and despite the improvement in unemployment rate the pair end up on 1.3640 level. However, if we take into account unusual cold weather we should not pay so much attention to these results. This week we should keep an eye on testimony of Fed Chairman Janet Yellen on Thursday and earlier delivery of Monetary Policy Report to House on Tuesday. On Wednesday Mario Draghi will speak at the European Monetary Institute’s about Progress through Crisis and Fed member James Bullard is about to speak in New York. On Friday will be release the German, French, Italian and EU GDP plus very important U.S. Consumer Sentiment.

USD/JPY

The USD/JPY pair in the beginning of the last week dropped and reached the lowest value since November 21^st. The movement down was driven mainly by stronger Yen which got some profits as a safe-haven currency after poor performance of stock and disappointing outlook of emerging markets. The pair reversed its bearishness on Thursday and despite worse-than-expected U.S. data moved up and finished above 102.20. This week the pair may be influence by speculation about U.S. testimony where analysts expect confirmation of further reduction in stimulus. On Tuesday the Japanese market will remain closed due to public holidays but later on during the night we should pay attention to Japanese Core Machinery Orders and Tertiary Industry Activity.

GBP/USD

Last week the GBP/USD first declined to its 6-weeks lows as the U.K. Manufacturing PMI and Services PMI came out worse-than-expected and almost touched the 1.6250 level. However, as the first pre-data for Non-farm payrolls came out from U.S. market the sentiment changed and climbed to 1.6415. This week except of the events on U.S. market described in EUR/USD paragraph we should pay attention to Bank of England speech on Wednesday and BoE Inflation Report.

GOLD

Last week the price of Gold first ranged between $1,248/ounce and $1,274/ounce and finished on the upper boarder as the disappointing Non-farm payrolls pulled the price up. The price might reverse and slid back because of the price correction as well as because of the testimony of Janet Yellen this week. Most of the analyst expect that Fed will confirm steady pace of tapering ($10 billion/month). In that case price of Gold might react by decline back to the $1,250/ounce. There will be also several FOMC speeches which might affect the price (Charles Plosser on Tuesday, Jaffrey Lacker and James Bullard on Wednesday).

Economics events (GMT time):