Binary Options Weekly Outlook: June 16 – June 20

June 16, 2014 – Weekly News

EUR/USD

Last week the EUR/USD pair accepted the previous news about interest rate cut from European Central bank and started to finally move down. By Wednesday the pair almost touched the 1.3500 level which seems to be very strong support but reversed. The U.S. economic data from last week (e.g. Retail Sales) came below expectation so the dollar slightly weakened. On Friday we saw another sharp drop of Euro connected with concerns that lower inflation data which came out from Germany will lead to additional stimulus from ECB. The pair, however, has remained in the area of 1.35-1.36. This week we should keep an eye on the European CPI data and ZEW Economic Sentiment which are coming out on Monday, U.S. CPI will be released on Tuesday but more important will be FOMC statement on Wednesday evening. On Thursday we should pay attention to the Philadelphia Fed Manufacturing Index.

USD/JPY

The USD/JPY pair was under pressure last week and deceased from 102.65 to 101.60 (means more than 100 pips) within 4 days. The pair reacted on positive Bank of Japan Monetary Policy statement where is written that the economy has been recovering in a moderate peace and there are no need right now to add more monetary stimulus. The Japanese Yen also benefits from the tension in Iraq and as a safe-haven asset adding some profits. This week on Tuesday the Japanese Monetary Policy Meeting minutes will be released and should increase volatility of the Yen. On Friday Haruhiko Kuroda is about to speak at the National Association of Shinkin Banks.

GBP/USD

Last week the GBP/USD first moved sideways between 1.6740 and 1.6830, however on Thursday the pair took a spike and increased to 1.6990. The pair reacted sharply on the Bank of England governor Mark Carney’s statement where he hinted possible earlier increase of the interest rates. The pair might attack the 1.7000 very soon as the British economy recovering in very good peace. This week we should pay attention to the U.K. CPI which will be released on Monday, The MPC Official Bank Rate Votes on Wednesday and U.K Retail Sales on Thursday.

GOLD

Gold has been traded in a bullish term last week and increased from $1,250/ounce to $1,284/ounce. The price was spurred by worse-than-expected U.S. economic data as well as by increasing tension in Iraq. The price might continue its upward movement if the situation in Iraq escalates. We should pay attention also to the U.S. market where will be several releases this week. On Tuesday we should keep an eye on the U.S. CPI data. On Wednesday the FOMC Monetary Policy Meeting Minutes will be posted and might give us some good trading opportunities.

Economics events (GMT time):