Binary Options Weekly Outlook: February 3 – February 7

February 3, 2014 – Weekly News

WEEKLY REPORT 03/02-07/02

EUR/USD

Last week the EUR/USD pair decreased by 1.73%. The pair mainly fell on Thursday – the day after Fed announced another cut in monetary stimulus (from $75 billion/month to $65 billion/month). On Thursday and on Friday we saw that German and EU CPI came out below expectation which might lead to another cut in interest rates. The EUR/USD pair finished the week below 1.3500 on 1.3478. This week the main event will be the U.S. Non-farm payrolls which will be released on Friday. We should pay attention to some pre-data before the actual NFP: ISM Non-Manufacturing PMI, ADP Non-Farm Employment Change and Prelim Nonfarm Productivity q/q. On Thursday the EU Minimum Bid Rate will be announced followed by Press Conference.

USD/JPY

Last week the USD/JPY pair has been moving sideways between 101.80 and 103.40. The pair did not react on stronger U.S. Dollar because Yen was benefiting as a safe-haven currency. However, most of the analysts predict that Yen will decline against U.S. Dollar on a longer-term outlook. This week the pair will be driven by U.S. data and speculation over Friday’s Non-farm payrolls.  From the Japanese market we should pay attention to Tuesday’s Average Cash Earnings.

GBP/USD

The GBP/USD pair finished last week below 1.6440 which means decreased by 0.3%. British pound suffered from BoE Governor Mark Carney’s speech where he was slightly dovish but the main decline came with strengthening of the U.S. Dollar on Thursday. This week is busy on U.K. and U.S. economic data. On Monday we should keep an eye on U.K. Manufacturing PMI and U.S. ISM Manufacturing PMI. On Tuesday the U.K. Construction PMI will come out. On Wednesday the U.K. Services PMI and U.S. ADP Non-Farm Employment Change will be released. On Thursday very important U.K. Official Bank rate plus MPC Rate Statement will be posted. And on Friday the U.S. Non-farm payrolls.

GOLD

The price of Gold slid from last Monday’s $1,278/ounce to last Friday’s $1,240/ounce and finished on $1,244/ounce. The price was first pulled by physical demand before Chinese New year’s holidays. After the physical demand weakened on Thursday and Fed decide to further scale back its monetary stimulus the price rapidly fell. This week due to the fact that the Chinese market has remained closed we should expect less volatility but look on U.S. data. With Friday’s Non-farm payrolls we should be able to find a good trading opportunities.

Economics events (GMT time):