Binary Options Weekly Outlook: May 19 – May 23

May 19, 2014 – Weekly News

WEEKLY REPORT 19/05-23/05

EUR/USD

Last week the EUR/USD slightly dropped on Tuesday once the German and EU ZEW Economic sentiment was released and showed figures under expectation. The disappointing data pushed the EUR/USD below 1.3700 and on Wednesday the pair fell for a while to 1.3640 but returned back to 1.3700 area. Despite the fact that the Euro returned we should take into account that the European central bank is more likely to add stimulus or cut interest rates in next meeting in June. That should make additional pressure on the pair. This week we should pay attention to speech of Bundesbank President Jens Weidmann on Monday, speech of Fed Chairwoman Janet Yellen on Wednesday, the EU Flash Manufacturing and Services PMI on Thursday and German Ifo Business Climate on Friday.

USD/JPY

The USD/JPY pair climbed up above 102 level in the first half of the week, however the pair did not last there long and on Thursday fell all the way to 101.35. The pair fell despite strong U.S. Dollar so we can see that Yen was the driver of this movement. With good data BoJ Governor Kuroda eased the speculation over possible additional stimulus. As most of the analyst expected those stimulus to happen till June the pair reacted by strengthening of Yen. This week the pair opened again in downward pressure as the Japanese Core Machinery Orders came out and showed impressive 19.1% instead of 6.1%. On Wednesday we should pay attention to Japanese Monetary Policy Statement followed by Press Conference.

GBP/USD

Last week the GBP/USD continued its bearish movement which started on May 7^th and fell all the way to 1.6730 – the one month low. Mark Carney (Governor of Bank of England) denied possible increase of interest rates as the U.K. labour data came worse than expected. However, the U.K. economy remains strong and therefore the pair returned by the end of the week above 1.6800. This week the main event for the pair will be U.K. MPC Asset Purchase Facility Votes, Official Bank Rates and Retail sales data which will be released on Wednesday. On Thursday we should keep an eye on U.K. GDP release.

GOLD

Gold opened last week at $1,289/ounce and closed at $1,293/ounce. Within the week the price tended to go more upwards reaching on Wednesday $1,308.9/ounce. The price was mostly influenced by tension in Ukraine and by U.S. data. Physical demand remained quiet. This week we should expect the same. We should pay attention to speech of Janet Yellen on Wednesday and U.S. Housing data on Thursday and Friday.

Economics events (GMT time):