Binary Options Weekly Outlook: January 27 – January 31

January 27, 2014 – Weekly News

WEEKLY REPORT 27/01-31/01

EUR/USD

Last week the EUR/USD pair had been moving sideways for first 3 days but on Thursday with strong European data and weak American data the pair jumped from 1.3540 level to almost 1.3700 level. The pair tried to climb more on Friday but lost momentum and currently is ranging around 1.3680. This week should be better for trading because of many important economic events. On Monday the traders should pay attention to German Ifo Business Climate which is expected to show growing pattern. On Tuesday the U.S. Core Durable Goods and CB Consumer Confidence will be released. On Wednesday all the analysts and traders will watch the FOMC statement where we expect another tapering of monetary stimulus. On Thursday the major event will be release of U.S. Advance GDP which is predicted to show 3.2% growth.

USD/JPY

Two weeks ago the USD/JPY pair touched last week its lowest price in 4 weeks and rebounded on 102.90 support back up to 104.80. Last week we saw similar situation when the pair strongly slid from 104.80 to 103.00 and then went down even lower to 101.80. The pair reacted on weaker U.S. data and soft performance of U.S. stocks market. The pair already reversed its bearish movement and may pick up this week if the U.S. economic data supports Dollar as well as if FOMC continues to reduce its quantitative easing program. Except of that we should pay attention to Japanese Retail Sales data which will be released on Wednesday. Also on Thursday will be announced very important data when the Japanese CPI will come out.

GBP/USD

Last week the GBP/USD continued its sharp movement up spurred with good U.K. economic data. The pair rose all the way to 1.6650 which is the highest price since May 2011 when the price peaked to 1.6750. However, on Friday the pair reacted negatively on the Mark Carney’s speech where he said that BoE will wait for long term recovery before policy tightens. The price is currently ranging around 1.6500. Except of the U.S. data we should watch this week the U.K. GDP which will be released on Tuesday. The forecast is to see 0.8% growth that means the same figure as last time in October. Any stronger result will pull the pair up.

GOLD

Last week the price of Gold first declined to $1,232/ounce but with weaker U.S. Dollar and softer stock market data the price increased to $1,278/ounce. That’s the highest price since November. The bullish sentiment has already changed to slightly bearish and the price decreased to $1,268/ounce. This week the major event for gold is the Wednesday FOMC statement. Last time (in December) when FOMC started tapering of the $85 billion/month stimulus by $10 billion/moth, the price of Gold dropped to $1,187/ounce within one day. Therefore we should be careful with any buying position and wait for the statement to come.

Economics events (GMT time):