Binary Options Weekly Outlook: January 12 – January 16

January 12, 2015 – Weekly News

EUR/USD

Last week, the EUR/USD started around 1.1950 but by Thursday the price had dropped to 1.1750. The Euro depreciated on the back of concerns over the Greek election and worries that they could leave the Euro-zone. Later in the week, however, the Dollar also erased its gains after the FOMC statement disappointed and provided no new information regarding the interest rate hike. On Friday, U.S labour data caused fresh bearish sentiment but losses were limited due to comments by FOMC member Jeffrey Lacker pushing the price back above 1.1850.

This week there will only be a few important economic releases. Traders should watch the U.S. Core Retails Sales which will be released on Wednesday. On Thursday, U.S. PPI data will be published and is expected to show the lowest figure since May 2013. On Friday, EU and US CPI data will be announced.

GBP/USD

The GBP/USD decreased over the last week and reached its lowest level since June 2013 at 1.5030. The pair depreciated on comments from the back of the Bank of England and reduced speculation that the interest rate could be hiked this year. Later in the week, the pair rebounded towards 1.5200 as FOMC members also provided dovish statements. It is evident that the market is very sensitive to these statements as gains from the strong labour data were erased immediately after Jeffrey Lacker spoke on Friday.

This week, keep an eye on the U.K. CPI data which will be released on Tuesday. On Wednesday, U.S. Retail Sales data may provide good trading opportunities. On Thursday, watch the U.S. PPI data and on Friday the U.S. CPI data.

GOLD

Gold has increased since the start of the year. As a safe-haven asset, the metal profits from dropping Oil prices which have so far pulled the price up from $1,180/ounce to $1,220/ounce. However, the U.S. stock market also recovered and therefore, Gold struggled to break through its resistance at $1,220/ounce.

Today, as the Dollar weakened and Oil continued to drop, the price finally managed to break through the resistance level. If this trend continues, we could see the price testing $1,240/ounce. This week, traders should watch the movement of Oil and the stock market. If Oil drops any lower and moves towards $40/barrel, the price of the yellow metal could be pulled up.

Economics events (GMT time):