Weekly Top 5 Binary Options Must Watch Events 07/29-08/04/2013
BOTS Financial Calendar: Weekly Top 5 Binary Options Trading Moves
1. United States Advance Gross Domestic Product
07/31/2013 – Wednesday at 12:30 pm GMT
What will it affect: USD, US indices and stocks
Forecast: 1.0% from the previous 1.8%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX
Why traders care and what to expect: The Gross Domestic Product is one of United States’ most important gauges for economic health and overall goods and services output. Usually the value is approximated with pretty high accuracy because most of the GDP components are known in advance but this does not make the actual release less important. A higher GDP suggests economic improvement while a lower one indicates that economy is contracting.
Directional bias: UP if the actual value is above 1.0%
DOWN if the actual value is below 1.0%
How I would trade this event: I would buy a four hour Call on EUR/USD if the actual value is lower than 1.0%.
2. United States Rate Decision and FOMC Statement
07/31/2013 – Wednesday at 6:00 pm GMT
What will it affect: USD, US Stocks and indices
Forecast: unchanged 0.25%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX
Why traders care and what to expect: Almost every time when an Interest Rate is not changed, the actual rate decision tends to have a lower impact than the Federal Open Market Committee Statement that is issued at the same time. The statement contains details about the reasons that influenced the rate vote and more important, an economic outlook and possibly hints about future monetary direction.
Directional bias: UP if the Rate is increased or if the FOMC Statement contains a hawkish outlook
Down if the Rate is decreased or if the FOMC Statement contains a dovish outlook
How I would trade this event: I would wait until volatility subsides and a clear direction is established.
3. UK Official Bank Rate and Asset Purchase Facility
08/01/2013 – Thursday at 11:00 am GMT
What will it affect: GBP, FTSE
Forecast: unchanged 0.50%; APF also unchanged: 375B
Where to keep an eye on the event: CommuniTraders, Forex Factory, Daily FX, Bloomberg, Reuters
Why traders care and what to expect: The Rate is not expected to change but the event will create volatility nonetheless. The Asset Purchase Facility represents the amount of money the Bank of England creates in order to stabilize the currency by purchasing assets in the open market. A larger sum is usually perceived bearish by market participants.
Directional bias: UP if the Rate is increased or the APF is decreased
DOWN if the Rate is decreased or the APF is increased
How I would trade this event: I will not trade at the time of the release.
4. ECB Interest Rate Decision and Press Conference
08/01/2013 – Thursday at 11:45 am GMT (Press Conference: 12:30 pm GMT)
What will it affect: Euro, Dax
Forecast: unchanged 0.50%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: Although the Rate decision creates decent volatility, Mario Draghi’s (ECB President) speech at that Press Conference is the main market mover. Investors and traders around the world try to interpret his words and attitude, but they often fail at doing it correctly and this generates sharp reversals and whipsaws. Caution is recommended if trading at the time.
Directional bias: UP if the Rate is increased or if Mario Draghi has a hawkish attitude
DOWN if the Rate is decreased or if Mario Draghi has a dovish attitude
How I would trade this event: I do not trade until the Press Conference is over.
5. US Non Farm Payrolls
08/02/2013 – Friday at 12:30 pm GMT
What will it affect: USD, US indices and stocks
Forecast: 185K from the previous 195K
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 job related indicator that the US releases and almost always the market reacts strongly. A higher number is indicative of a thriving economy where people find jobs more easily and the opposite is valid for a lower number. Employment is also highly correlated with consumer spending which is a major part of the US economy.
Directional bias: UP if the actual number will be bigger than 185K
DOWN if the actual number will be smaller than 185K
How I would trade this event: I would buy a Put on EUR/USD if the value will be higher than 190K
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Note 1: The times, dates and values can change during the week. Keep an eye on the mentioned financial websites for any modifications.