Binary Options Weekly Outlook: March 2 – March 6

March 2, 2015 – Weekly News

WEEKLY REPORT 2/3-6/3

EUR/USD

At the beginning of last week the EUR/USD traded sideways in a wide channel between 1.1300 and 1.1400.On Thursday, the pair dropped 200 pips and fell from 1.1380 to 1.1180 as U.S. FOMC member, Lockhart, supported the interest rate increase in June. In an interview with The Wall Street Journal, he said “I continue to believe that all meetings from June onward should be on the table”. His hawkish comments sent the U.S. Dollar up more than 1% against all of its major peers. The pair slightly corrected on Friday as German CPI data showed weakening deflation, however, better than expected U.S. GDP data pushed the EUR/USD back to 1.1180.

This week, the pair is expected to remain under pressure as the ECB is about to launch quantitative easing. The main events will be Thursday’s ECB Minimum bid rate followed by a Press Conference and Friday’s U.S. Non-farm payroll data.

GBP/USD

Last week the GBP/USD traded with bullish sentiment and reached a fresh 8 week high. The sentiment was supported by Mark Carney’s Inflation hearing report as he stated that inflation should return to 2% in “reasonable” time. The pair reached its strong resistance level at 1.5550 where it then bounced back down. The pair then reacted to Lockhart’s hawkish statements and within a few hours, dropped more than 100pips settling around 1.5400.

This week there will be several important events. The most important will be the U.K. Official Bank rate which will be released on Thursday and the U.S. Non-farm payrolls data which comes out on the first Friday of the month.

 GOLD

Last week Gold surprisingly increased and climbed above $1,220/ounce. Gains were seen despite the stronger dollar and hawkish statements from FOMC member Lockhart. The metal was spurred by a recent pick up in physical demand which came from China. Over the weekend, the Chinese central bank cut their interest rates by 25 basis points causing physical demand to remain firm. Traders should be careful, however, when placing buying positions as speculation could begin ahead of Friday’s Non-farm payrolls report. If the data is strong, the price could return back down.

Economics events (GMT time):