Binary Options Weekly Outlook: January 26 – January 30

January 23, 2015 – Weekly News

WEEKLY REPORT 26/1-30/1

EUR/USD

Last week the EUR/USD pair started slightly above 1.1550 and remained there until Thursday. Investors were awaiting the European Central bank monetary meeting where most of them expected an announcement of further quantitative easing. The fact that ECB president Mario Draghi not just introduced the additional stimulus but exceeded the expected amount drove the euro sharply down. Within few hours, the pair fell from 1.1640 to 1.1350. On Friday, the negative mood persisted as market priced-in very possible winning of Syriza party in Greek election. Because Syriza party really won, the pair tested the 1.1100 level. This week, we should expect some price correction after last week’s 550 pips drop. However, if the FOMC statement, which will be released on Wednesday, support the strong U.S. recovery, we might see the pair falling further down. We should also pay attention to the U.S. German Ifo Business Climate (which is scheduled on Monday), the U.S. Core Durable Goods Orders (which will be announced on Tuesday) and the EU CPI data (which will come out on Friday).

GBP/USD

The GBP/USD pair offered us more trading opportunities last week. The pair was moving sideways in wide channel between 1.5075 and 1.5210 until last Thursday. On Wednesday, we saw a sharper movement downwards connected with disappointing U.K report. Two Mo0netary policy committee members, which had been voting for interest rate hike since August 2014, changed their opinion and jointed the dovish club. Any hopes of earlier interest rate rise disappeared. The British pound then depreciated on the back of further ECB stimulus. The pair dipped to 1.4950 but currently is traded around 1.5000 level. This week on Tuesday, the U.K. GDP data and U.S. Core Durable Goods Orders data will come out and should bring higher volatility. Do not forget about Wednesday’s FOMC statement which may push the pair even lower.

GOLD

Last week, the price of gold reached its 5-month high. The price of safe-haven assets was driven by nervousness on the markets before the European Central Bank decision. As Mario Draghi introduced further bond-buying program the stock market revived and started to go up. Those who held their previous positions in gold started to sell it and therefore the price decreased back below $1,300/ounce. We should expect that the downtrend would continue if there will be no surprising announcements. The stock market will be another indicator whether to expect the price going further down and staying high. The main even of this week, which should be reflected on the yellow metal, is FOMC statement which will come out on Wednesday.

Economics events (GMT time):