Binary Options Weekly Outlook: November 17 – November 21

November 17, 2014 – Weekly News

EUR/USD

Last week was a quiet week for the EUR/USD and the pair traded between 1.2400 and 1.2500. Volatility increased on Friday as several pieces of important data were released. The final European CPI and GDP were slightly better than expected; the Flash GDP grew by 0.2% during the last quarter, higher than the expected rate of 0.1%.The main focus was on the U.S. Retail Sales data which came out slightly above expectations. The Dollar weakened, however, after James Bullard’s dovish speech in which he stated that it is too early to increase interest rates. This caused the pair to jump to its current level of 1.2575.

This week should be more interesting for binary option traders. On Monday, the President of the European Central bank, Mario Draghi, will testify before the Committee on Economic and Monetary Affairs. Any hints that monetary stimulus may be increased could lead to a huge sell-off of the Euro. On Tuesday, traders should watch the German ZEW Economic Sentiment. On Wednesday, the main event will be the FOMC Meeting Minutes report. Finally, on Thursday, pay attention to the EU Flash Manufacturing & Services PMI as well as U.S. CPI data.

GBP/USD

Last week, the GBP/USD dropped more than 300 pips; the pair dropped from Tuesday’s high of 1.5945 to Friday’s low of 1.5590. The drop was caused by the Bank of England’s quarterly interest rate report. The bank cut the inflation outlook for another 6 months and lessened speculation that the interest rate could be increased.

This week, there could be an upwards price correction. On Tuesday, the U.K. CPI will be announced and if the figure exceeds 1.2% we could see the pair climb back above 1.5800. On Wednesday, pay attention to the U.K. Official bank rate votes; the current prediction is to see 2 votes in favour of an interest rate hike and 7 against. On Wednesday evening the U.S FOMC Meeting Minutes will be released and should create higher volatility. Finally, on Thursday, watch the U.K. Retail Sales data.

GOLD

Last week, Gold ranged between $1,145/ounce and $1,175/ounce. On Friday, James Bullard’s statement created a good trading opportunity and pushed the price to a high of $1,194/ounce. The price could now be spurred by an upcoming referendum in Switzerland on November 30. In the referendum, the Swiss National Bank will decide whether to increase Gold reserves from 8% to 20% in order to prevent the EUR/CHF dropping below 1.2000.

At the beginning of this week we could see a price correction. After this traders should pay attention to the U.S. FOMC Meeting minutes report which may push the price back down.

Economics events (GMT time):