Binary Options Weekly Outlook: July 7 – July 11

July 7, 2014 – Weekly News

WEEKLY REPORT 07/07-11/07

EUR/USD

Last week the EUR/USD pair decreased despite the jump up in the begging when the pair increased to its one month high. The pair closely watched the U.S. data as a predictor for Thursday’s Non-farm payrolls results and due to the fact that the data were positive the pair started to slowly move down. The main drop we saw right after the actual NFP release when the pair erased about 70 pips and moved below 1.3600. On Friday the U.S. market remained closed and therefore the market did not experienced much volatility. However, we can see that the bearish sentiment has continued and the pair is still slightly moving down as the new week started. This week we should pay attention to the German Trade Balance data, U.S. JOLTS Job Openings (both on Tuesday), the FOMC Meeting minutes (on Wednesday) and ECB Monthly Bulletin (on Thursday). We should pay attention to the channel where the pair is predicted to remain (1.35-1.37).

USD/JPY

The USD/JPY pair reversed last week its bearish move and rose from 101.25 to 102.25 within the week. The main reason for this bullish movement was the U.S. Dollar which benefited from the good economic results before Non-farm payrolls and from the Non-farm payrolls itself. We can see that contrarily from the EUR/USD the pair slightly corrected its movement and finished just above 102.00. That might point on sideways movement which we should expect now. There will be also some important Japanese data coming out this week. First of all we should pay attention to the Japanese Current account which will come out on Monday. On Wednesday the Core Machinery Orders and Tertiary Industry Activity is coming out and should create some good trading opportunities.

GBP/USD

Last week the GBP/USD reached new almost 6-year high and twice attacked the 1.7180 level. We saw that despite the very strong U.S. labor data where we saw very impressive 288.000 jobs created in U.S. last month, the pair erased the movement down and continued very high. This week the pair started with slight drop but we can see patterns of sideways movement so the pair might rebound up soon. We do expect higher volatility on this particular pair due to important U.K. releases. On Tuesday the U.K. Manufacturing Production will be released but importantly on Thursday the Official bank rate and MPC rate statement will be announced. We do not predict any main changes in the U.K. monetary policy but we might see some hawkish forecast which can send the pair higher or the other way round.

GOLD

Gold started the last week with a significant movement up adding $20/ounce within one day. The price was supported by unclear U.S. outlook and geopolitical tension in Iraq. The price remained high till Thursday when the U.S. labour data sent the price of the precious metal down to $1,310/ounce. With lower price we saw the strength of physical demand which immediately picked up and pull the price up by $10/ounce. As this week started we can see again movement down, however we should be careful with longer-term position as the movement is consider right now to be sideways. The main event for this week which should affect the price of Gold will be FOMC Meeting minutes report which will come out on Wednesday.

Economics events (GMT time):