Binary Options Weekly Outlook: July 21 – July 25

July 21, 2014 – Weekly News

WEEKLY REPORT 21/07-25/07

EUR/USD

Last week the EUR/USD pair fell down by 100 pips when and moved to its lower part of the channel. As we wrote 2 months ago the price tends to range between 1.35-1.37 levels. Once we see the price on the boarder of the channel we should be cautions with another positions. On one hand we can see tension of the pair to return back inside the channel, on the other we know that the U.S. economy proved some strengthening and Euro is struggling which supports the downward movement. This week start quietly as on Monday there are no economic event to be released. We should keep an eye on U.S. CPI data (on Tuesday), Flash Manufacturing PMI (on Thursday) and German Ifo Business Climate together with Core Durable Goods Orders (on Friday).

USD/JPY

 The USD/JPY pair slightly increased in the first half of the week, however before reaching the 101.80 resistance level reversed down and by Thursday fell to 101.05. The pair decreased mainly due to stronger Yen which benefited from escalating geopolitical tension. We can see clearly that the time when the Malaysian plane was shot down in Ukraine the price drop as the Yen took profit as safe-haven asset. This week will also start with lower volatility as we wrote in EUR/USD paragraph. The reason is that Japanese market will remain close due to public holiday observance. The main data we should watch is Wednesday’s Japanese Trade balance and Thursday’s Core CPI.

GBP/USD

Last week the GBP/USD reached again new 6 month maximum and reversed on 1.7190. The pair was struggling so high as most of investors weighted whether the U.K. economy is really that strong to keep the British pound high. Because the pair reversed and fell below 1.7050 we can say that market is cautious about recent gains despite stronger U.K. labour data. This week we should pay attention to the U.K. MPC Official Bank Rate release on Wednesday. On Thursday the Retail sales will be announced and should give us some trading opportunities. Last but not least, on Friday the U.K GDP data will come out and therefore we do expect some movement on the pair.

GOLD

Gold experienced a huge sell off in the beginning of last week and fell by more than $40/ounce on Monday and another $10/ounce on Tuesday. The price dropped significantly as stock market was spurred by great second quarter releases which pulled the stock up. However, with price around $1,295/ounce the physical demand picked up and slightly pulled the price up. As the Malaysian airplane was shot down on Thursday the price peaked up to $1,322/ounce but finished the week again low. This week we should pay attention to the geopolitical situation in Ukraine as well as in Middle East. If the tension increase we should expect the price back up.

Economics events (GMT time):