Weekly Top 5 Binary Options Analysis and Forecasts 02/17-21/2014
The Must-Watch Top 5 Events of the Week
1. United Kingdom Consumer Price Index
02/18/2014 – Tuesday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: unchanged 2.0%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: The indicator shows the change in prices paid by consumers for the same basket of products, it is the main inflation gauge and it is used by the Bank of England when making decisions related to the Interest Rate. A CPI outside certain limits may determine the BoE to adjust rates.
Directional bias: UP if the actual value is higher than 2.0%
DOWN if the actual value is lower than 2.0%
How I would trade this event: I would buy a one hour Put on GBP/USD and one on GBP/JPY if the value will be at least slightly below 2.0%
2. German ZEW Economic Sentiment
02/18/2014 – Tuesday at 10:00 am GMT
What will it affect: EUR, DAX
Forecast: 61.3 from the previous 61.7
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: This survey draws its importance from the fact that it is derived from the opinions of about 275 German institutional investors and professional analysts. They are asked to give their opinion on a 6 month outlook for the German economy which is the backbone of the entire Eurozone.
Directional bias: UP if the value is higher than 61.3
DOWN if the value is lower than 61.3
How I would trade this event: I would buy an hourly Call on EUR/USD if the value will exceed 63.0.
3. FOMC Meeting Minutes
02/19/2014 – Wednesday at 7:00 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 Federal Open Market Committee uses the Minutes to provide insights regarding the reasons that influenced their latest interest rate decision. It’s a detailed record of their latest Meeting and has the potential to influence the market strongly.
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. US Consumer Price Index (year over year)
02/20/2014 – Thursday at 1:30 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 1.6% from the previous 1.5%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: The Consumer Price Index is the main gauge of inflation and basically it shows the purchasing power of the US Dollar. Keep an eye on the CORE version of the indicator (released at the same time).
Directional bias: UP the actual value is higher than 1.6%
DOWN if the actual value is lower than 1.6%
How I would trade this event: I would buy a four hour Put on EUR/USD if the value will be higher than 1.5%
5. United Kingdom Retail Sales
02/21/2014 – Friday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: -0.9% from the previous 2.6%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: Sales made at a retail level represent the major part of consumer spending which is one of the most important parts of an economy. The indicator is considered a significant market mover and has a high impact almost always.
Directional bias: UP if the actual value is higher than -0.9%
DOWN if the actual value is lower than -0.9%
How I would trade this event: I would place an hourly Call on GBP/JPY if the value will be higher than 0.0%
_______________________________________________________________________________________
Follow Bogdan’s Trading Events Live on CommuniTraders Social Trading Platform!
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.