The Weekly Top 5 Binary Options Trading Forecasts 04/07-11/2014
The Must Watch Top 5 Events of the Week
1. Bank of Japan Monetary Policy Statement
04/08/2014 – Tuesday early morning GMT (03:00 am GMT according to some sources)
What will it affect: JPY, Japanese stocks and indices
Forecast: unchanged
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: The Statement will contain relevant insights regarding the Bank’s decision on Interest Rate with remarks upon the economic factors that led to their decision, but most important it may hold hints on future monetary direction. Market participants will also closely monitor the Press Conference which will follow shortly after (some sources have it at 06:30 am GMT).
Directional bias: UP if the Statement contains a positive outlook
DOWN if the Statement contains a negative outlook
How I would trade this event: I don’t trade during such events. Once volatility is back to normal and a clear direction is established, I would trade accordingly.
2. FOMC Meeting Minutes
04/09/2014 – Wednesday at 6:00 pm GMT
What will it affect: USD, US stocks and indices
Forecast: no forecast is announced for this type of event
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: During a year the Federal Open Market Committee organizes 8 meetings and the Minutes are a detailed record of their most recent meeting. The FOMC Minutes provide insights upon their latest rate decision and have the potential to strongly influence the market.
Directional bias: UP if the Minutes are more hawkish than expected
DOWN if the Minutes are more dovish than expected
How I would trade this event: I don’t trade at the time of such events because irregular movements can occur.
3. Australian Employment Change
04/10/2014 – Thursday at 01:30 am GMT
What will it affect: AUD, Australian stocks and indices
Forecast: 7.3K from the previous 47.3K
Where to keep an eye on the event: CommuniTraders, Bloomberg, Forex Factory, Reuters, DailyFX
Why traders care and what to expect: A high level of employment combined with a constant job creation lead to a thriving economy with a high consumer spending. Due to its importance and earliness of release this indicator usually has a noticeable impact on the market.
Directional bias: UP the actual value is higher than 7.3K
DOWN if the actual value is lower than 7.3K
How I would trade this event: I would buy an hourly Put on AUD/USD if the expected value will be lower than 6K.
4. Bank of England Interest Rate decision
04/10/2014 – Thursday at 11:00 am GMT
What will it affect: GBP, FTSE
Forecast: no change is anticipated from the current 0.50%
Where to keep an eye on the event: CommuniTraders, Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: For currency valuation the short term Interest Rate is a crucial factor and probably the biggest market mover, which can generate lasting trends. Thought the Rate is not expected to change, this event will most likely incite volatility. Only if a Rate change occurs, a statement will be released soon after the announcement.
Directional bias: UP if the Rate is increased
DOWN if the Rate is decreased
How I would trade this event: I do not trade at the time of such events.
5. US Prelim UoM Consumer Sentiment
04/11/2014 – Friday at 1:55 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 81.2 from the previous 80.0
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, Daily FX
Why traders care and what to expect: Consumer sentiment and consumer spending are highly correlated, and as we know the latter constitutes a major part of the whole economic activity. A more confident consumer will more likely spend more; therefore market participants will closely track the figure for an early insight into the general economic health.
Directional bias: UP the actual number is higher than 81.2
DOWN if the actual number is lower than 81.2
How I would trade this event: I would buy a Call on USD/JPY with a four hour expiry if the actual number will be higher than 82.0
_______________________________________________________________________________________
Follow Bogdan’s Top Trading Events Live on CommuniTraders Social Trading Platform!
Note: The times, dates and values can change during the week. Also, different sources sometimes show different values. Keep an eye on the mentioned financial websites for any modifications.