Binary Options Weekly Outlook: January 5 – January 9

January 5, 2015 – Weekly News

WEEKLY REPORT 5/1-9/1

EUR/USD

Last week the EUR/USD traded with bearish sentiment and by the end of the week the pair had fallen from 1.2220 to 1.2000. The drop was seen despite the fact that the market was closed for New Year’s Day. The Euro has been struggling due to the situation in Greece as elections have been set for January 25. Investors are worried that the Syriza party could take power and if so, Germany could push Greece to withdraw from the Euro-zone. Fears are still lingering and this morning the pair dropped to a new 8 year low of 1.875.  In addition to this, the European Central Bank may introduce new quantitative easing to spur the economy and this could weaken the single currency further.

This week pay attention to the German CPI data which will be posted on Monday. On Wednesday, keep an eye on the European CPI and U.S. ADP Non-farm employment change. The most anticipated event of the week will be Friday’s U.S. Non-farm payrolls report which should create great opportunities for binary option traders.

GBP/USD

For most of last week, the GBP/USD ranged between 1.5500 and 1.5620. However, on Friday the pair sharply dropped towards 1.5300 as U.K. Manufacturing PMI data came out at a 3-month low. The data removed speculation that the U.K. economic recovery is strong causing rumors of an earlier interest rate hike to fade. The pair fell even further this morning as the European single currency plummeted down to 1.5180, before correcting back to 1.5270.

The outlook for the pair remains bearish and the upcoming U.K. Construction PMI data is expected to show its lowest figure since October 2013. On Tuesday, U.K. Services PMI data will be announced and on Thursday, the U.K. official bank rate and monetary rate statement will be released. On Friday, U.S. labor data should bring high volatility.

GOLD

In comparison to other assets, Gold traded with high volatility last week. The price dropped from Tuesday’s high of $1,210/ounce to Friday’s low of $1,167/ounce. Today, the price is climbing back towards $1,200/ounce.

This week, the price could climb if the Greek crisis escalates further. Traders should also keep an eye on oil as it has almost dropped to a new 6 year low. Gold as a safe-haven asset may increase above $1,210/ounce. However, at the end of the week, strong U.S. data may cut profits.

Economics events (GMT time):