Binary Options Weekly Outlook: October 27 – October 31

October 27 – 31 2014 – Weekly News

EUR/USD

Last week the EUR/USD started above 1.2750 and climbed to 1.2840 despite positive U.S. data. The price then dropped to 1.2610 ahead of the overall European Flash Manufacturing and Services PMI data which were both released on Thursday. The data, however, did not disappoint and so the Euro re-gained some of its losses and finished the week just below 1.2700. Over the weekend traders were paying attention to the European stress tests, the results were positive and no European bank failed.

This week there will be a lot of economic events. Investors should watch the German Ifo Business Climate (on Monday), the U.S. Core Durable Goods Orders and CB Consumer Confidence (on Tuesday), the U.S. FOMC Statement (on Wednesday), the U.S. GDP data (on Thursday) and the European CPI (on Friday). The pair may increase at the beginning of the week in anticipation of German data but we might see the price move back down before the FOMC statement which is expected to be hawkish. The European CPI should also add further pressure to the pair.

GBP/USD

The GBP/USD followed a similar patter to the EUR/USD. At the beginning of the week, the pair increased to 1.6185 but then fell back down and tested its support at 1.6000. The UK Official bank votes disappointed the market as they did not show any progression for a hike in interest rates. The bearish sentiment was supported on Thursday when the U.K. Retail sales data showed a decrease of 0.3%.

This week traders should pay more attention to the U.S. market as these events will drive the pair. If the FOMC report hints towards an earlier hike in interest rates, the price may fall below 1.6000.

GOLD

Bullish sentiment halted for Gold and the metal started to drop last Tuesday. The price reacted to better returns on the stock market which spurred demand for riskier (but more profitable) assets. As third quarter earnings releases are coming out and are mostly exceeding expectations, the price may fall even lower.

This week Gold traders should pay attention to the FOMC meeting and its statement which will be released on Wednesday evening. We expect FOMC members to upgrade the U.S. outlook but changes in monetary policy are unlikely as the global output seems to be slowing down.

Economic events (GMT time):