Binary Options Weekly Outlook: March 03 – March 07

March 03, 2014 – Weekly News

WEEKLY REPORT 03/03-07/03

EUR/USD

Last week the EUR/USD pair first slightly decrease on Wednesday and went down to 1.3650. The movement down was driven mainly due to better-than-expected U.S. New Home Sales and optimism before Thursday’s Janet Yellen testimony. However, on Thursday the testimony did not bring any news or hawkish statements so the pair moved back up above 1.3720. On Friday we saw significant jump of more than 100 pips once the EU CPI data came out. These data are closely watched due to the fact that European Central Bank may act if needed. As we saw slightly positive inflation data the concerns about possible increase of monetary stimulus disappear and the pair climbed to 1.3820. This week will be really busy on important events.  The biggest ones are ECB Official Interest rate release on Thursday and U.S. Non-farm payrolls on Friday.

USD/JPY

Last week the USD/JPY pair moved sideways till Thursday. As the political situation in Ukraine has been escalating the pair is sliding down. Yen as a safe haven asset benefits from this crisis and pushing the pair down to 101.30 area from last week’s 102.50. This week we should closely watched (except of the situation in Ukraine) the Japanese Average Cash Earnings on Tuesday. Due to the fact that on Friday will be released the U.S. Non-farm payrolls data we should pay attention also to the pre-data. On Monday the ISM Manufacturing PMI, on Wednesday the ADP Non-Farm Employment Change and ISM Non-Manufacturing PMI.

GBP/USD

The GBP/USD the pair strengthened by 0.78% last week from 1.6620 to 1.6750. The pair was mainly driven by U.S. Dollar as the U.K. market did not release any important or surprising economic data (the U.K. GDP came out as expected). Due to the fact that U.S. Dollar weakened after quite dovish testimony of Janet Yellen and after disappointing U.S. GDP, the pair climbed all the way to 1.6765 where reversed. This week we should pay attention to the U.K. Manufacturing PMI (on Monday), the U.K. Construction PMI (on Tuesday) and the U.K. Services PMI (on Wednesday). On Thursday the U.K. Official Rate statement will be released and should cause higher volatility as well. Finally on Friday we should pay attention to U.S. Non-farm data.

GOLD

The price of Gold climbed last week from $1,319/ounce to $1,344/ounce due to tension in Ukraine and speculation over future Fed tapering. On Wednesday when the U.S. data came out slightly better-than-expected and situation in Ukraine seemed to calm down the price dropped back to 1,319/ounce. During the weekend the world is watching Russian steps in Ukraine and as the political situation is again on the edge the price jumping up to $1,347/ounce and might climb more. This week the price will fluctuate accordingly to that tension. The price of gold should be also affected by the main events of this week: the European Central Bank meeting and the interest rate decision on Thursday and the Non-Farm payrolls on Friday.

Economics events (GMT time):