The Weekly Top 5 Binary Options Trading Forecasts 05/19-23/2014
The Must Watch Top 5 Events of the Week
1. United Kingdom Consumer Price Index (year over year)
05/20/2014 – Tuesday at 08:30 am GMT
What will it affect: GBP, FTSE
Forecast: 1.7% from the previous 1.6%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: Consumer Price Index is a must watch indicator for any country as it is an important inflation gauge. As we all know CPI is closely monitored by every country’s Central Bank in an attempt to contain inflation between certain values and to maintain price stability. If values of this indicator will go outside a predefined comfort range it will determine the Bank of England to apply certain measures, which include changes made to the Interest Rate.
Directional bias: UP if the actual value is higher than 1.7%
DOWN if the actual value is lower than 1.7%
How I would trade this event: I would buy an hourly Call on GBP/JPY if the value will be higher than 1.7%
2. Bank of Japan Monetary Policy Statement
05/21/2014 – Wednesday early morning GMT (3:00 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
Why traders care and what to expect: This is the primary tool used by the Bank of Japan to communicate with investors about economic outlook and to offer insights into future monetary policy direction. The Governor of the Bank of Japan will hold a press conference about three hours later (exact time is not known but some sources say 6:00 am GMT); the press conference usually has a tremendous impact on the Yen, depending on Governor’s attitude and matters discussed.
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 will trade after the Press Conference is over and only if a clear direction is established.
3. Bank of England’s MPC Meeting Minutes
05/21/2014 – Wednesday at 8:30 am GMT
What will it affect: GBP, FTSE
Forecast: 0 – 0 – 9
Where to keep an eye on the event: CommuniTraders, Forex Factory, DailyFX, Bloomberg, Reuters, BoE official website
Why traders care and what to expect: The votes of the Monetary Policy Committee (MPC) regarding the latest Interest Rate decision are made public through the Meeting Minutes. It’s a good way for traders to assess the Bank’s stance regarding interest rates and economic environment.
Directional bias: UP if the Minutes contain positive expectations
DOWN if the Minutes contain negative or stagnant expectations
How I would trade this event: I would buy a 30 minute Call on GBP/USD if the Minutes will be hawkish.
4. FOMC Meeting Minutes
05/21/2014 – 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: The Meeting Minutes contain insights into the reasons that stood behind the Fed’s latest interest rate decision as well as a breakdown of the FOMC members’ votes. Whenever the Minutes contain clues about future rate increases, volatility goes through the roof.
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.
5. UK Gross Domestic Product (quarter over quarter)
05/22/2014 – Thursday at 08:30 am GMT
What will it affect: GBP, FTSE
Forecast: unchanged, 0.8%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: The Gross Domestic Product is an economy’s prime gauge of overall performance; however, sometimes its impact tends to be mild because almost all of its components are known in advance, thus making an estimate of its value fairly accurate. The British economy is showing signs of constant improvement but a decrease or even a stagnant GDP can weaken the Pound.
Directional bias: UP if the value is higher than 0.8%
DOWN if the value is lower than 0.8%
How I would trade this event: I would buy a four hour Put on GBP/USD if the value will be lower than 0.8%
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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.