Binary Options Weekly Outlook: September 1 – September 5, 2014

Binary Options Weekly Outlook

EUR/USD

The EUR/USD declined for 7 consecutive weeks and reached its current level of 1.3120 last week. The strongest decline came on Friday as the pair reacted to positive U.S. data and increasing tension in Russia. The Euro immediately depreciated after the EU threatened placing further sanctions on Russia. Further pressure exists due to speculation that the European Central Bank will most likely increase monetary stimulus on Thursday to prevent economic stagnation.

Labour data is being released from the U.S. this week and so we should see a lot of volatility for the pair. The Non- Farm Payroll figure is watched closely as the Fed has stated they might increase interest rates once labour data is strong enough.

GBP/USD

Last week the GBP/USD traded sideways between 1.6535 and 1.6615. After reaching a 5 month low, the pair stopped moving lower. This came as the UK released better than expected inflation and economic confidence data.

This week traders should pay attention to the U.K. Manufacturing PMI (on Monday), Construction PMI (on Tuesday), Services PMI (on Wednesday) and the Interest rate release (on Thursday). The U.S. Dollar will be influenced by the upcoming Non-farm payrolls data, which will come out on Friday.

GOLD

Gold opened at $1,280/ounce last week and by Thursday had increased to $1,297/ounce. The price of the safe haven asset gained as fighting in Ukraine resumed. Germany and France both threatened to increase sanctions against Russia and on Saturday, EU leaders agreed to do so within a week.

This week, traders should watch the situation in Ukraine as well as economic data from the U.S. As we know, Non-farm payrolls (which is scheduled for Friday) usually causes a lot of volatility for Gold and therefore, great trading opportunities for Binary options trades.

Economics events (GMT time):