Binary Options Weekly Outlook: March 23- March 27

March 23, 2015 – Weekly News

WEEKLY REPORT 23/3-27/3

EUR/USD

The EUR/USD started last week at a 12 year low as the market anticipated the FOMC statement. The statement was released on Wednesday and despite the fact that Janet Yellen commented that a June hike was possible, economic projections were downgraded sparking speculation that the hike may not happen so early. The price shortly climbed above 1.1000 but returned back below 1.0700. On Friday, FOMC member Dennis Lockhart spoke in Athens and even though he stated that the “… June meeting (will) clearly be taken seriously as a meeting for the ‘lift-off’ decision”, investors took the overall remark as dovish and the price climbed above 1.0800 where it is currently trading.

This week will start with a testimony from the President of the ECB, Mario Draghi. No other important news is expected so volatility might remain low. On Tuesday, the EU Flash Manufacturing and Services PMI will be released. As both are expected to decline, the pair could give up some of its recent gains. The EU German Ifo Business Climate will be announced on Wednesday as well as U.S. Core Durable Goods. On Friday, we should pay attention to the U.S. Final GDP data and to a speech from Fed Chairman, Janet Yellen.

GBP/USD

The GBP/USD briefly jumped above 1.5000 and reached a 2 week high as the dollar depreciated on the back of the disappointing U.S. economic projections. The projections, which were released on Wednesday, downgraded the economic outlook with respect to the stronger dollar which harms exports. The GDP and inflation forecasts were both corrected downwards due to low oil prices. Despite the fact that the pair erased most of its gains a day later, the pair climbed back towards 1.5000 as FOMC member Dennis Lockhart was more dovish on Friday.

This week traders should watch inflation data from both the U.S and U.K. The U.S. CPI is expected to be slightly higher which may push the pair lower. On Wednesday, the main event will be the release of U.S. Core Durable Goods Orders which is expected to come out stronger. On Thursday, U.K. Retail Sales data will come out and could help the British pound, as the prediction is to see an increase of 0.4%. On Friday, pay attention to speeches from Mark Carney and Janet Yellen and to the U.S. Final GDP release.

GOLD

Last Monday, Gold bounced off a 3-month low and has since added around $40/ounce. The price was spurred by the negative mood over the timing of the U.S interest rate hike. The hike was widely expected to occur in June but now seems unlikely and investors have shifted their expectations to September. The price headed towards $1,200/ounce but remains below at $1,182/ounce.

This week, we should pay attention to the U.S. CPI release on Tuesday and more importantly to the U.S. Final GDP release on Friday. If economic growth beats estimates (2.4%) we should expect that the price of the yellow metal will strongly decrease.

Economics events (GMT time):