Binary Options Weekly Outlook: February 23 – February 27

February 23, 2015 – Weekly News

EUR/USD

Last week, the EUR/USD traded with huge swings as the pair moved 150 pips in both directions. The movement was caused by negotiations between Greece and the Eurogroup; Greece did not want to extend their bailout under current conditions (which will expire this week). However, on Thursday, the Greek Prime Minister submitted the request which was surprisingly rejected by Germany; pushing the Euro down. At the end of the week, the bailout was extended for four months resulting in relief on the market which moved the pair back to 1.1380.

This week will begin with the German Ifo Business climate index release which is expected to show strong figures. On Tuesday, the President of the ECB, Mario Draghi, will speak at the official unveiling of the 20 Euro banknote and Janet Yellen will testify before the Senate. On Wednesday, Janet Yellen will testify again before the House Financial Services Committee and Draghi will speak before the European Parliament. On Thursday, the EU Targeted LTRO rate and U.S. CPI data will be announced. On Friday, pay attention to the German Preliminary CPI data and U.S. Preliminary GDP data.

GBP/USD

At the beginning of last week, the GBP/USD dropped to 1.5340 as it corrected from the sharp increase seen previously. However, Wednesday’s UK labour data supported the British Pound and pulled the pair back above 1.5400. Finally, on Friday, UK Retail Sales data missed expectations and pushed the pair back below 1.5400.

This week should be an interesting week. Volatility should pick up on Tuesday and Wednesday as Janet Yellen, the head of the Federal Reserve, will be speaking. On Thursday, the Second UK Estimate GDP will be released and is expected to show an increase of 0.5% which would be the weakest rate since May 2013. However, we also expect negative data from the U.S. market as monthly inflation should decrease by -0.6%. On Friday, pay attention to the U.S. Preliminary GDP data release.

GOLD

Gold dropped below $1,200/ounce twice last week. As the Chinese market was closed for the New Year’s holiday, physical demand weakened. In addition, the recent ceasefire in Ukraine and the optimistic outlook regarding negotiations in Europe damped demand for safe-haven assets.

This week, pay attention to the Fed Chairman’s testimonies which will take place on Tuesday and Wednesday. On Wednesday, the Chinese market will re-open after holidays, so we should expect physical demand to pick up. On Thursday, U.S. CPI data will be released and could influence the price. On Friday, traders should pay attention to the U.S. Preliminary GDP data.

Economics events (GMT time):