BOTS Financial Calendar: Weekly Top 5 Binary Options Trading Moves 05/20-25/2013
The Must Watch Top 5 Events of the Week
1. Bank of Japan Interest Rate Decision
05/22/2013 – Wednesday early morning
What will it affect: JPY
Forecast: unchanged, 0.10%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: The interest rate can determine the path a currency takes for the next period because it is the main instrument used by the Central Bank to achieve monetary stability. Sometimes the rate decision itself is overshadowed by the Press Conference that follows. BOJ Governor Kuroda’s attitude during the Press Conference will possibly generate sudden moves but at the moment the exact times for these events are not announced. Keep an eye on the mentioned websites for updates.
Directional bias: UP if the rate is increased or if Governor Kuroda has a hawkish attitude
DOWN if the rate is decreased or if Governor Kuroda has a dovish attitude
How I would trade this event: I would wait for the volatility created by the two events to settle down and then trade according to the outcome of the Rate decision and the Press Conference.
2. FED Chairman Ben Bernanke Testifies
05/22/2013 – Wednesday at 2:00 pm GMT
What will it affect: USD, US indices
Forecast: no estimate is announced for this type of event
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: Ben Bernanke is due to testify on Economic Outlook and Monetary Policy in front of the Joint Economic Committee in Washington DC. This type of topic has a high impact on the US Dollar and strong moves will most likely be seen at the time of the testimony. The Chairman will answer Committee’s questions but he doesn’t know in advance what those questions are so his unscripted reactions will most likely generate high volatility.
Directional bias: UP if the Chairman is hawkish
DOWN if the Chairman is dovish
How I would trade this event: This event has the potential to be the biggest market mover of the week. I will not trade at the time of the event.
3. FOMC Meeting Minutes
05/22/2013 – Wednesday at 6:00 pm GMT
What will it affect: USD, US Indices
Forecast: no estimate is announced for this type of event
Where to keep an eye on the event: CommuniTraders, Forex Factory, Daily FX, Bloomberg, Reuters
Why traders care and what to expect: The Meeting Minutes contain details about the members’ votes on the last Funds Rate decision and also important insights into the economic and monetary reasons that influenced their votes. Under normal conditions the FOMC Meeting Minutes generate high volatility but Ben Bernanke’s testimony mentioned earlier may affect the market’s behavior.
Directional bias: UP if the Minutes are more hawkish than anticipated
DOWN if the Minutes are more dovish than anticipated
How I would trade this event: I would buy an hourly Put on EUR/USD and an hourly Call on S&P 500 if the Meetings are more hawkish than anticipated.
4. ECB President Mario Draghi speaks
05/23/2013 – Thursday at 7:30 pm GMT
What will it affect: EUR, DAX
Forecast: no estimate is made for this type of event
Where to keep an eye on the event: CommuniTraders, Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: Like we mentioned many times before, speeches of Central Bank leaders generate a lot of volatility, especially when the topic is closely related to future economic developments. This speech is titled “The Future of Europe in the Global Economy” so the impact can be very high on the European single currency and on European indices.
Directional bias: UP if the President is hawkish in his speech and attitude
DOWN if the President is dovish in his speech and attitude
How I would trade this event: Because the event is scheduled in the evening (GMT time), it is possible to see a mild impact. If this is the case, I will trade according to Mario Draghi’s attitude. If the market reacts strongly, I will stay away until things calm down.
5. US Durable Goods Orders
05/24/2013 – Friday at 12:30 pm GMT
What will it affect: USD, US indices, some US Stocks
Forecast: 1.7% from the previous -5.7%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: Goods with a life expectancy of more than three years are considered “durable goods” and a surge in orders for this type of product is indicative of increased economic activity and improved economic conditions. Usually such goods require a large investment and are purchased less in times of economic contraction so more orders for durable goods suggest optimism among the consumers.
Directional bias: UP if the value is higher than 1.7%
DOWN if the value is lower than 1.7%
How I would trade this event: I would buy 15 minute Puts in sequence on EUR/USD and Calls on S&P 500 if the value is higher than 1.7%
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Note 1: The Reserve Bank of Australia will release their Meeting Minutes on Tuesday; the Bank of England will do the same on Wednesday. Governor Kuroda will speak on Friday at a conference in Tokyo. There are also other events this week that will have an impact on the market so we recommend you to keep an eye on financial websites for the exact time and expected outcome of those events.
Note 2: Monday most major banks are closed so we might experience a day with irregular movement.
Note 3: The times, dates and values can change during the week. Keep an eye on the mentioned financial websites for any modifications.