Binary Options Weekly Outlook: November 3 – November 7

November 3, 2014 – Weekly News

EUR/USD

Last week the EUR/USD dropped drastically and fell 270 pips after the FOMC statement was released. The report was more hawkish than expected, however, no important decisions were made by the Fed. Australian housing data came out worse-than-expected today and pushed investors to move their investments to the Dollar. Consequently the price has now reached its lowest level since August 2012.

This week we should expect a lot of trading opportunities connected to economic data and in particular, U.S. labor data. The Nonfarm Payrolls data will be released on Friday and the EU interest rate decision will be released on Thursday. If monetary policy from both countries diverges further we may see the pair move even lower.

GBP/USD

The GBP/USD dropped strongly and traded below 1.6000 as the Dollar climbed. The U.S. Dollar appreciated on the back of the slightly hawkish FOMC statement. However, the U.K. economy has been improving recently and consequently, there should be an upwards price correction.

This week, traders should pay attention to U.S. labor as well as U.K. Manufacturing PMI data on Monday, UK Construction PMI on Tuesday, UK Services PMI on Wednesday and the MPC rate statement on Thursday. The current expectation is that these figures will not be too strong and this could keep the pair below 1.6000.

GOLD

Gold started the week above $1,230/ounce, however, it then fell to a 4 year low at $1,160/ounce. The price reacted slightly to the FOMC report but the main drop came on Friday after the Bank of Japan surprised the market by extending its monetary stimulus. This caused the U.S. Dollar to appreciate and pushed Gold through its support.

This morning, the price again fell to $1,160/ounce as the U.S. Dollar benefited from disappointing Australian data. Bearish sentiment remains for the metal due to earnings reports from the U.S. which have mostly shown improvement and spurred the stock market. This week you should keep an eye on U.S. data and in particular the Non-farm payrolls release on Friday.

Economics events (GMT time):