Binary Options Weekly Outlook: March 31 – April 4

March 31, 2014 – Weekly News

WEEKLY REPORT 31/03-04/04

EUR/USD

Last week the EUR/USD pair has continued its downtrend and in by the end of the week erased about 50 pips. On Friday the pair bounced on its 1-month low (1.3705) as weaker German CPI increased expectation of European Central Bank action. On Monday we should pay attention to EU CPI data which are now expected to be also quite disappointing. Later on Monday we should not miss Fed Chairman Janet Yellen speech. This week we will have two main events – ECB Minimum Bid Rate on Thursday and US Non-farm payrolls on Friday. The ECB event is now expected to be bearish for the pair because of probable raise in monetary stimulus. The Non-farm payrolls are expected to be better than last time which is also supporting bearish movement of the pair. Except of those two main events we should watch carefully the US pre-NFP data (ISM Manufacturing PMI, ADP Non-Farm Employment Change and Unemployment Claims).

USD/JPY

The USD/JPY pair started last week around 102.15 and during the week moved sideways in a narrow range between 102.00 and 102.70. However, on Friday the pair managed to break through the resistance and climbed to 103.00 where stopped. Outlook of Japanese Yen is slightly negative as the Bank of Japan is expected to introduce additional stimulus to the economy to ease the impact of tax rate increase (starting from April 1^st). If the BoJ really introduce the additional stimulus we should see the pair above 103.00. This week we should also keep an eye on Tankan Manufacturing Index (Monday), the US pre-Non-farm payrolls data and the Friday’s Non-farm payrolls itself.

GBP/USD

Last week the GBP/USD erased its previous drop to 1.6460 and returned back to 1.6640 area means that the pair added about 200 pips last week. The British pound strengthened after good CPI and Retail Sales data which pointed again on a strong U.K. economy. This week except of the U.S. Non-farm data on Friday we should watch the Tuesday’s U.K. Manufacturing PMI, Wednesday’s U.K. Construction PMI and Thursday’s U.K. Services PMI. On Monday we should also keep an eye on BoE Governor Mark Carney speech at the Bank of England. On Tuesday at 8.30AM (GMT) the BoE releases its Financial Policy Committee Minutes from March 19^th.

GOLD

Last week after the price of Gold has continued its bearish movement and fell from $1,335/ounce to $1,286/ounce. The price dropped as the tension in Russia calmed down and traders of hedge funds withdrawing its previous investments. The physical demand should pick up with lower price, however, as we saw weak data from China the physical demand right now remains low. We should pay attention this week to U.S. data and mainly to Friday’s Non-farm payrolls. On Wednesday we should watch the speech of IMF member Lagarde about Global Economy in Washington. The same day Fed members Lockhart and Bullard will also hold a speech which might affect the price.

Economics events (GMT time):