The Weekly Top 5 Binary Options Trading Forecasts 06/09-13/2014
The Must Watch Top 5 Events of the Week
1. UK Manufacturing Production (month over month)
06/10/2014 – Tuesday at 8:30 am GMT
What will it affect: GBP, FTSE
Forecast: 0.4% from current 0.5%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This monthly report released by UK’s Office for National Statistics measures the manufacturing output which represents about 80% of total industrial production. As we know production is still playing an important part in UK’s economic growth thus making this report a leading indicator of economic health.
Directional bias: UP if the actual number is higher than 0.4%
DOWN if the actual number is lower than 0.4%
How I would trade this event: I would buy an hourly Put on FTSE if the actual number will be lower than expected.
2. UK Unemployment Rate
06/11/2014 – Wednesday at 8:30 am GMT
What will it affect: GBP, FTSE
Forecast: 6.7% from current 6.8%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This report shows the change in the percentage of unemployed people who are actively seeking employment. Released together with the Claimant Count report, they both serve as a barometer of UK’s labor market health which is correlated with consumer spending and we know that they are all very important factors of overall economic health.
Directional bias: UP if the actual number is lower than 6.7%
DOWN if the actual number is higher than 6.7%
How I would trade this event: I would buy an hourly Call on GBP/JPY if the actual number will be lower than expected.
3. RBNZ Interest Rate Decision and Statement
06/11/2014 – Wednesday at 9:00 pm GMT
What will it affect: NZD, New Zealand stocks and indices
Forecast: anticipated to change to 3.25% from previous 3.00%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: Beginning with March this year we have seen a constant increase in New Zealand’s Interest Rate, starting from 2.50% and quickly reaching 3.00%. This rally is not expected to stagnate as market experts anticipate another increase this month. Scheduled at the same time is the Press Conference held by the Reserve Bank of New Zealand, in which they will explain their decision and probably offer hints regarding future monetary policy.
Directional bias: UP if the Rate increases or the Statement contains a positive outlook
DOWN if the Rate decreases or the Statement contains a negative outlook
How I would trade this event: I don’t trade at the time of such events. Once volatility is back to normal and a clear direction is established I will trade accordingly.
4. Australian Employment Change
06/12/2014 – Thursday at 1:30 am GMT
What will it affect: AUD, Australian stocks and indices
Forecast: 10.3K from the previous 14.2K
Where to keep an eye on the event: CommuniTraders, Bloomberg, Forex Factory, Reuters, DailyFX
Why traders care and what to expect: This monthly report released by the Australian Bureau of Statistics shows the change in the number of employed people. An increase seen on this indicator could lead to higher consumer spending and thus to a stronger overall economic activity.
Directional bias: UP the actual value is higher than 10.3K
DOWN if the actual value is lower than 10.3K
How I would trade this event: I would buy an hourly Put on AUD/USD if the expected value will be lower than 10K.
5. United States Retail Sales
06/12/2014 – Thursday at 12:30 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 0.5% from the previous 0.1%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: The US Census Bureau releases this monthly report which measures the total sales of goods at retail level. Retail Sales have a few shortcomings: they can be volatile due to seasonality, they do not cover the service sector sales and are failing to be adjusted to inflation; but despite all of them this indicator still stands high on the list of market movers, mainly because of the insights offered into consumer spending which is vital for the US economy.
Directional bias: UP if the actual value is higher than 0.5%
DOWN if the actual value is lower than 0.5%
How I would trade this event: I would place a 15 min Call on USD/JPY if the value will be as expected or higher.
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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.