Binary Options Weekly Outlook: February 24 – February 28

February 24, 2014 – Weekly News

WEEKLY REPORT 24/02-28/02

EUR/USD

Last week the EUR/USD pair slightly increased by 0.6%, however the movement is more consider to be sideways then upwards. The pair kept the whole week its price between support and resistance and despite several important fundamental releases the pair did not move significantly. The data came out from both markets (U.S. and EU) quite weaker-than-expected and therefor the price could not move one direction. Yesterday, Mario Draghi spoke on the G20 meeting and said that on March 6^th the ECB will decide whether they will have to fight with deflation or not. That gives negative sentiment on Euro and we might see some weakening this week. This week we should pay attention to German Ifo Climate index on Monday, the U.S. CB Consumer Confidence Index on Tuesday, U.S. Core Durable Goods Orders on Thursday and U.S. GDP data on Friday. This week on Thursday Janet Yellen (Fed Chairman) will testify before senate.

USD/JPY

Last week the USD/JPY pair started around 101.80 and finished around 102.50. The pair increased several times. Firstly on Tuesday, when the BoJ supported more monetary stimulus and secondly after FOMC meeting minutes, when traders confirmed that the tapering of QE will continue. This week we should watch the U.S. CB Consumer Confidence index on Tuesday, the U.S. Core Durable Goods Orders, the Japanese Core CPI and Retail Sales On Thursday and the U.S. GDP on Friday.

GBP/USD

The GBP/USD the pair opened on its 4-year high (1.6810) but the sentiment changed and the pair slid during last week to 1.6610 means weakened by 1.2%. The British pound suffered on disappointing inflation data and lower-than-expected Unemployment rate. Part of the movement down can be also described as price correction after reaching its maximum. This week except of the event driving U.S. Dollar described already above we should keep an eye on the U.K. GDP which will be released on Wednesday and Mark Carney’s (BoE Governor) speech on Friday.

GOLD

The price of Gold after reaching its 3-months $1,331/ounce last Monday the sentiment slightly reversed and slid to Thursday’s $1,310/ounce mainly due to FOMC Meeting Minutes report which supported the tapering of monetary stimulus despite some negative data which are coming out lately (disappointing Non-farm Payrolls ect). Fed will also probably change its target Unemployment rate for increasing interest rate as the Unemployment rate almost touching the target but the labor market is still unstable. We saw some strengthening as this week started connected with the G20 meeting. European Central Bank might act soon if the inflation data point on deflation. The political situation in Ukraine may also pull the price up. We should watch the U.S. data this week and especially the testimony of Janet Yellen on Thursday.

Economics events (GMT time):