Weekly Top 5 Binary Options Analysis 08/05-09/12/2013
The Must Watch Top 5 Events of the Week Including Analysis
1. Reserve Bank of Australia Interest Rate Statement
08/06/2013 – Tuesday at 04:30 am GMT
What will it affect: AUD
Forecast: unchanged 2.75%
*Note: At the moment, Daily FX lists an anticipated decrease to 2.50%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX, RBA Official website
Why traders care and what to expect: Both the Interest Rate and the Rate Statement are released at the same time but the main event is usually the latter. If the Rate is changed, the decision will gain additional importance. The Statement is the primary tool the Reserve Bank of Australia uses to communicate about monetary policy direction and future rate changes.
Directional bias: UP if the Rate is increased or if the Statement contains a hawkish outlook
DOWN if the Rate is decreased or if the Statement contains a dovish outlook
How I would trade this event: I would only trade once volatility calms down and a direction is established.
2. United States Trade Balance
08/06/2013 – Tuesday at 12:30 pm GMT
What will it affect: USD, US Stocks and indices
Forecast: -43.1B from the previous of -45.0
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX
Why traders care and what to expect: The Trade Balance shows the difference between the total volume of imported and exported services and goods. A Trade Balance above zero indicates that exports have a higher value than imports and it’s very positive for the US economy. The indicator is deep into negative territory but an increase usually strengthens the greenback.
Directional bias: UP if the actual value is higher than -43.1B
Down if the actual value is lower than -43.1B
How I would trade this event: I would buy a four hour Put on EUR/USD and a Call on S&P 500 if the value will be higher than -40 Billions.
3. Bank of England Inflation Report and Press Conference
08/07/2013 – Wednesday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: no forecast is announced for this type of event
Where to keep an eye on the event: CommuniTraders, Forex Factory, Daily FX, Bloomberg, Reuters
Why traders care and what to expect: The Inflation Report contains the Bank of England economic growth projections for the next two years and also important insights about their view on inflation. At the same time, Governor Carney and MPC members will hold a Press Conference, discussing the Report.
Directional bias: UP if the Report contains a positive outlook and Gov Carney has a hawkish attitude.
DOWN if the Report contains a negative outlook and Gov Carney has a dovish attitude.
How I would trade this event: I will not trade at the time of the Press Conference; instead I will wait to see the effect and trade accordingly.
4. Bank of Japan Monetary Policy Statement
08/08/2013 – Thursday
What will it affect: JPY, Japanese indices and stocks
Forecast: no forecast is announced for this type of event
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: Bank of Japan members meet in order to decide the future direction of the monetary policy and to establish a “Guideline for Money Market Operations”. The exact time is not known at the moment but usually it is released very early in the morning (GMT).
Directional bias: UP if the Statement contains a hawkish outlook
DOWN if the Statement contains a dovish outlook
How I would trade this event: I would only trade when a clear direction is determined.
5. European Central Bank Monthly Bulletin
08/08/2013 – Friday at 08:00 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, ECB Official website
Why traders care and what to expect: The Monthly Bulletin shows the statistical data that was evaluated when the Governing Council made the Interest Rate decision and more important, it contains analysis of current and future economic conditions. All this shapes investor’s sentiment about the Euro and thus, determines the future direction of Euro related pairs.
Directional bias: UP if the Bulletin contains a hawkish outlook
DOWN if the Bulletin contains a dovish outlook
How I would trade this event: I would buy a four hour Put on EUR/USD if the Bulletin doesn’t contain a clearly hawkish outlook
_______________________________________________________________________________________
Keep Tracking of the Upcoming Binary Options Trading Events on CommuniTraders Social Trading Platform!
Note : The times, dates and values can change during the week. Keep an eye on the mentioned financial websites for any modifications.