Binary Options Weekly Outlook: March 17 – March 21

March 17, 2014 – Weekly News

WEEKLY REPORT 17/03-21/03

EUR/USD

Last week the EUR/USD pair started without any significant movement, moving sideways between 1.3835 and 1.3900. However on Thursday the pair managed to get positive momentum and break through the resistance and climb to its 2 year high – 1.3965. The pair was pushed by disappointing U.S. data as well as by the situation in Ukraine. It seems that investors trust in Euro more than in Dollar right know. This situation is quite unpleasant for European Central Bank which might act if the Euro strengthens more. This week the main event will be FOMC meeting and its statement. Investors are expecting that Fed will decide to continue with tapering of the $65 billion/month monetary stimulus. In that case we should expect some movement down. Except of this we should pay attention to German ZEW Economic Sentiment and U.S. CPI on Tuesday.

USD/JPY

Two weeks ago we saw the USD/JPY pair strengthening from 101.20 to almost 103.80. However, last week we so the opposite movement and the pair moved back to 101.20. The support at 101.20 seems to be strong and the pair always bounced back. The pair fell mainly on Thursday when the Yen benefited from the tension in Ukraine. Yen as safe-haven asset strengthened against all of the major peer. This week we should pay attention to the situation over the Crimea. On Sunday we saw that in referendum most of the population (96%) on Crimea is wishing to be connected to Russia. The EU and U.S. consider the vote as illegal and preparing sanction. Except of the political situation the pair will be also influenced this week by the FOMC statement on Wednesday and by U.S.CPI data on Tuesday.

GBP/USD

The GBP/USD pair fell last week to its 1-month low reaching 1.6570 level. The decrease came after Governor of Bank of England Mark Carney said on Tuesday that the interest rates may be put on hold for extended period of time.  The pair on Thursday increased back above 1.6700 level but reversed and finished the week around 1.6640. This week we should expect higher volatility connected to economic events. Except of the FOMC statement on Wednesday we should pay attention also to U.K. Claimant Count Change, MPC Official Bank Rate Votes and Unemployment Rate.

GOLD

Last week the price reached almost 6-month high and moved up to $1,388/ounce mainly due to tension in Crimea. Gold as a safe haven asset is benefiting in those situations and the price has been increasing since that. This week the price rose above $1,390/ounce. The referendum in Crimea is consider not to be legal. On March 20 and 21 leaders of the 28-nation EU will meet in Brussels on to discuss further measures aimed at Russia. The price will be also affected on Wednesday by FOMC statement.

Economics events (GMT time):