The Weekly Top 5 Binary Options Trading Forecasts 07/07-11/2014
The Must Watch Top 5 Events of the Week
1. UK Manufacturing Production (month over month)
07/08/2014 – Tuesday at 8:30 am GMT
What will it affect: GBP, FTSE
Forecast: 0.5% from current 0.4%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This report is important because production accounts for almost a quarter of UK’s GDP and manufacturing production represents around 80% of this total production. An increase of this figure indicates economic expansion and health for the Pound.
Directional bias: UP if the actual number is higher than 0.5%
DOWN if the actual number is lower than 0.5%
How I would trade this event: I would buy an hourly Call on FTSE if the actual number will exceed expectations.
2. FOMC Meeting Minutes
07/09/2014 – 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: The Minutes are released about 3 weeks after the Federal Funds Rate is announced and they contain the breakdown of the FOMC members’ votes and the reasons behind their latest Interest Rate decision. If the Minutes will contain also hints regarding future rate changes, it is very likely to see volatility burst all over 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
07/10/2014 – Thursday at 1:30 am GMT
What will it affect: AUD, Australian stocks and indices
Forecast: 12.3K from the previous -4.8K
Where to keep an eye on the event: CommuniTraders, Bloomberg, Forex Factory, Reuters, DailyFX
Why traders care and what to expect: This is a monthly indicator that shows the change in the number of employed people during the last month. The report is released by the Australian Bureau of Statistics in their monthly Labour Force Survey. A higher number of employed people suggest higher spending potential which is good for the Australian Dollar.
Directional bias: UP the actual value is higher than 12.3K
DOWN if the actual value is lower than 12.3K
How I would trade this event: I would buy an hourly Call on AUD/JPY if the value will be as expected or higher.
4. ECB Monthly Bulletin
07/10/2014 – Thursday at 8:00 am GMT
What will it affect: EUR, DAX
Forecast: no forecast 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: The ECB issues a press copy of the Monthly Bulletin for the media, 7 days after the Minimum Bid Rate announcement. The purpose of this Bulletin is to explain their latest decision by providing a detailed analysis of the current economic situation. If the Bulletin has an overall hawkish sentiment, we could see euro strengthening.
Directional bias: UP if the Monthly Bulletin has a hawkish sentiment
DOWN if the Monthly Bulletin has a dovish sentiment
How I would trade this event: I don’t trade during such events. If a clear direction is established, I would trade accordingly.
5. Bank of England Interest Rate decision
07/10/2014 – 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 more than 5 years the Official Bank Rate has been maintained at the same level of 0.50%, but every single release has sparked volatility in the market. An increase in Rate or even expectations of increase will cause the Pound to appreciate, opposite is true for a decrease in Rate. In case of an adjustment in Rate or Asset Purchase Facility, a MPC Statement will be released shortly after.
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.
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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.