Binary Options Weekly Outlook: November 10 – November 14

November 10, 2014 – Weekly News

EUR/USD

Last week the EUR/USD dropped below 1.2400 and reached a new 2 year low. The drop was caused by dovish remarks from the European Central Bank. Draghi stated that if economic conditions worsen the bank is prepared to immediately add monetary stimulus to spur the economy. Speculation ahead of the NFP report then pushed the pair further down. However, the release showed that only 214,000 jobs were created during the month of October, below the expected 235,000.  Regardless of this, the unemployment rate fell to 5.8%, showing that the labour market is improving at a faster pace than expected.

This week is expected to be relatively quiet. On Tuesday, there will be a bank holiday in the U.S and so no economic data will be released. The stock market, however, will remain open. Higher volatility is expected towards the end of the week when preliminary German GDP data and U.S. retail sales data will be released.

GBP/USD

Early last week, the GBP/USD pair was bouncing off its resistance at 1.6020. However, the pair fell 200 pips and reached 1.5790 following strong speculation ahead of the U.S Non-farm Payroll report. Bearish sentiment then changed to bullish sentiment as the actual reading was lower than expected. Today, the pair has continued upwards as the data is still being priced into the market.

Higher volatility should be experienced on Wednesday as the U.K Claimant Count Change will be released. Speculation beforehand is currently pushing the British Pound higher. Later in the week, traders should watch Mark Carney’s speech (the Governor of the Bank of England) as he may provide hints as to when interest rates could be increased. Final movement should be seen on Friday with the release of U.S. Retail Sales data.

GOLD

Gold dropped to $1,130/ounce, its lowest level since 2010. The price came under pressure once its support level at $1,150/ounce was broken. Analysts predicted that the price would drop further as physical demand remained weak. However, the metal erased some of its losses after U.S data came out worse than expected and the price climbed to $1,170/ounce.

This week, traders should pay attention to U.S. Retail Sales data which will be announced on Friday.

Economics events (GMT time):