Binary Options Weekly Outlook: February 16 – February 20

February 16, 2015 – Weekly News

WEEKLY REPORT 16/2-20/2

EUR/USD

In the beginning of last week the EUR/USD pair moved sideways in a narrow channel as investors were waiting for results from meeting between Greece and euro group financial ministers. Due to the fact that there were no decisions the single currency did not significantly move. However, on Thursday the U.S. Retail Sales data came below expectations and weakened the dollar. The pair increased above 1.1440 where has remained until now. This week, the main topic will be Greek negotiation about agreement over their debt which takes place on Monday. Even though the negotiations are moving slowly, market does not see a treat from possible “Grexit” as in past few weeks. On Tuesday, the German ZEW Economic Sentiment will be released and it is expected that the figure will be the highest in 12 months. On Wednesday, we should not forget about U.S. FOMC Meeting minutes report where traders will look for any hints about possible interest rate hike. On Thursday, the similar report will be posted by ECB. On Friday, pay attention to the EU Manufacturing and Services PMI.

GBP/USD

Last week, the GBP/USD pair broke through the strong resistance and increased above 1.5400 – 6-week high. As well as the EUR/USD pair, the GBP/USD pair was driven by weaker U.S. dollar which depreciated due to very weak Retail Sales data. The movement up was also supported by hawkish inflation report. Mark Carney, governor of Bank of England, stated that although the inflation has been very low, the forecast predicts the rate to reach the 2% target within 2 years. This week may start slower as U.S. market will remained closed due to holidays observation. Volatility should pick up on Tuesday when the U.K. CPI data will be announced. On Wednesday, keep an eye on the U.S. FOMC Meeting minutes which may push the pair lower, if the report supports dollar. On Friday, pay attention to the U.K. Retails Sales data release.

GOLD

The price of gold fluctuated last week between $1,245/ounce and $1,216/ounce. During the first half of the week, the price declined as ceasefire about Ukraine was signed in Belarus and investors damped the safe-haven assets. However, due to softer US Dollar, the price of yellow metal climbed back to current $1,230/ounce. This week, trades should pay attentions to negotiations in Brussels regarding Greek debt. Any concerns that Greece might exit euro area would immediately pull the price of gold up. On Wednesday, once the FOMC report will be release we do expect higher volatility on this asset which should be great opportunity for binary option traders.

Economics events (GMT time):