Weekly Top 5 Binary Options Analysis and Forecasts 03/03-07/2014
The Must Watch Top 5 Events of the Week
1. ECB President Mario Draghi Testifies
03/03/2013 – Monday at 2:00 pm GMT
What will it affect: EUR, DAX
Forecast: no forecast is made 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 President, Mario Draghi is scheduled to testify before the European Parliament’s Committee on Economic and Monetary Affairs. Depending on the specific topics discussed and his attitude, volatility could be experienced on all Euro related pairs.
Directional bias: UP if the President has a hawkish attitude
DOWN if the President has a dovish attitude
How I would trade this event: I would trade only if a clear direction is generated by his testimony.
2. Reserve Bank of Australia Interest Rate decision and Rate Statement
03/04/2013 – Tuesday at 3:30 am GMT
What will it affect: AUD, Australian stocks and indices
Forecast: no Interest Rate change is anticipated (2.50%)
Where to keep an eye on the event: CommuniTraders, Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: The Rate Statement will reveal insights into the economic reasons which influenced the rate decision and will possibly offer hints about future rate changes. The Rate itself is often already priced in the market and that’s why the Statement which is focused on the future has more importance.
Directional bias: UP if the Rate is increased or the Statement offers hints about future increases
DOWN if the Rate is decreased or the Statement offers hints about future decreases
How I would trade this event: I don’t trade at the time of such events. If a clear direction is established, I would trade accordingly.
3. Bank of England Interest Rate decision
03/06/2013 – Thursday at 12:00 pm 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: The Interest Rate is probably the biggest market mover for a currency and can generate strong trends. Although the Rate is not expected to change, the event will most likely generate a lot of volatility. A statement will be released only if a rate change occurs.
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.
4. ECB Interest Rate Decision and Press Conference
03/06/2013 – Thursday at 12:45 pm GMT (Conference starts at 1:30 pm GMT)
What will it affect: EUR, DAX
Forecast: no change anticipated from the current 0.25%
Where to keep an eye on the event: CommuniTraders, Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: Usually the Press Conference is the biggest market mover, creating more volatility than the rate decision itself. ECB President Mario Draghi will read a prepared statement and afterwards he will answer journalists’ questions. This Q&A session generates the strongest moves as traders try to interpret his answers and to find hints about future Euro direction.
Directional bias: UP if the President is hawkish or the Rate is increased
DOWN if the President is dovish or the Rate is decreased
How I would trade this event: I will only trade after the Conference is over, according to the established direction.
5. US Non Farm Payrolls
03/07/2013 – Friday at 1:30 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 151K from the previous 113K
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This is the most important report regarding the US jobs situation and shows the change in employment numbers, excluding the farming sector. A higher number of employed people is beneficial for the economy and also indicates that consumer spending is likely to increase in the near future.
Directional bias: UP if the actual number is higher than 151K
DOWN if the actual number is lower than 151K
How I would trade this event: I would buy an hourly Put on EUR/USD and a Call on USD/JPY if the actual number will meet or surpass expectations.
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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