The Weekly Top 5 Binary Options Trading Forecasts 08/18-22/2014
The Must Watch Top 5 Events of the Week
1. United Kingdom Consumer Price Index (year over year)
08/19/2014 – Tuesday at 08:30 am GMT
What will it affect: GBP, FTSE
Forecast: 1.8% from the previous 1.9%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: CPI shows the change in prices of goods and services purchased by consumers in UK, but it also shows the purchasing power of the Pound and thus becomes a key measure of inflation. Although the current value of inflation is floating in BOE’s targeted range, any significant change will determine the Bank of England to take counter measures and this could also mean a change in the Interest Rate.
Directional bias: UP if the actual value is higher than 1.8%
DOWN if the actual value is lower than 1.8%
How I would trade this event: I would buy an end of day Put on FTSE if the value will be lower than expected.
2. Bank of England’s MPC Meeting Minutes
08/20/2014 – 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: MPC’s Official Bank Rate votes are made public 13 days after the Rate decision is announced. Any change from the current 0 – 0 – 9 breakdown of votes could sparkle volatility in the market as it shows a disagreement between MPC’s members that could lead to a change in the Interest Rate.
Directional bias: UP if the Minutes contain positive expectations
DOWN if the Minutes contain negative or stagnant expectations
How I would trade this event: If volatility will be present, I will wait until a clear direction has established on a Pound related pair and I will trade accordingly.
3. FOMC Meeting Minutes
08/20/2014 – 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: This detailed record of FOMC’s most recent meeting is released 3 weeks after the Federal Fund Rate is announced and it probably has more impact on the market than the actual Rate decision itself. The Minutes contain the breakdown of FOMC’s members’ votes and the reasons behind their decision.
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.
4. German Flash Manufacturing PMI
08/21/2014 – Thursday 07:30 am GMT
What will it affect: EUR, DAX
Forecast: 51.8 from previous 52.4
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: Purchasing Managers’ Indexes (PMI) are economic indicators derived from monthly surveys that cover private sector companies, but not the public sector. For this Thursday we have the Flash versions (the earliest) for manufacturing and service sectors for both Germany and France. For PMI indicators a figure above 50.0 indicates industry expansion and traders should keep an eye on the actual numbers from both countries as they should be traded as a whole.
Directional bias: UP if the actual value is higher than 51.8
DOWN if the actual value is lower than 51.8
How I would trade this event: I would buy an hourly Put on EUR/JPY if the value will be lower than expected.
5. Jackson Hole Economic Symposium
08/22/2014 – Friday (second day of the symposium)
What will it affect: EUR, USD
Forecast: no forecast 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: This annual symposium is held in Jackson Hole, Wyoming, since 1981 and it gathers up central bankers, finance ministers, academics and leading financial players from all over the world to discus important issues faced by the US and other world economies. This year’s focus will be on Re-Evaluating Labor Market Dynamics and will include speeches from Fed Chair Janet Yellen (2:00 pm GMT) and ECB President Mario Draghi (6:30 pm GMT).
Directional bias: UP if the attitudes are hawkish
DOWN if the attitudes are dovish
How I would trade this event: I will not trade during this event, irregular movement may occur.
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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.