Weekly Top 5 Binary Options Trading Market Moves – 2/11-15/2013
The Must Watch Top 5 Events of the Week
1. UK Consumer Price Index
02/12/2013 – Tuesday at 09:300 am GMT
What will it affect: GBP, FTSE
Forecast: 2.8% from a previous of 2.7%
Where to keep an eye on the event: Forex Factory
Why traders care and what to expect: The Consumer Price Index measures the change in prices paid by people for goods and services and it also serves as the Bank of England’s main gauge for inflation. Values above 3% require the BoE Governor to write an official letter explaining what it is done to solve the issue. A higher than expected value can strengthen the Pound because it can signal a potential bank rate increase.
Directional bias: UP if the value will be higher than 2.8%
DOWN if the value will be lower than 2.8%
How I would trade this event: I would buy an hourly Call on GBP/USD if the actual number will be higher or equal to 2.8%
2. Speech of ECB President Mario Draghi
02/12/2013 – Tuesday at 3:30 pm GMT
What will it affect: EURO
Forecast: No forecast is made for this type of event
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: Every time heads of central banks speak publicly, a lot of volatility can be seen but the market responds stronger to Mario Draghi’s speeches than anyone else’s. He is due to deliver a speech at the Spanish Congress in Madrid. Even if not a lot of volatility will be seen, it’s better to be safe than sorry so you should be aware of this event.
Directional bias: UP if Mario Draghi will be hawkish in his remarks and attitude
DOWN if Mario Draghi will be dovish in his remarks and attitude.
How I would trade this event: I would definitely wait for the speech to be over and then decide about the impact it had on the market and about the direction.
3. US Core Retail Sales
02/13/2013 – Wednesday at 1:30 pm GMT
What will it affect: S&P 500, DOW JONES
Forecast: 0.2% from a previous of 0.3%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: This indicator measures the change in the total value of sales made on a retail level during the previous month, excluding automobiles. The retail sector accounts for a major part of a country’s economy and higher values are usually indicative of a thriving economic environment.
Directional bias: UP if the actual value will be higher than 0.2%
DOWN if the actual value will be lower than 0.2%
How I would trade this event: I would buy a 15 minute Call on S&P 500 if the value will be higher than 0.5%.
4. Bank of Japan Rate decision and Press Conference
02/14/2013 – Thursday
What will it affect: JPY
Forecast: Unchanged from 0.10%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: The importance of the interest rate is paramount for every currency but sometimes the actual release is overshadowed by the press conferences that usually follow. The exact time of the event is not known at the moment but it will probably be very early in the morning (GMT); last month, the rate decision was announced at 03:47 am GMT and the Press Conference started at 06:04 am GMT.
Directional bias: UP if the rate is increased
DOWN if the if the rate is decreased
How I would trade this event: I would buy 15 minute Puts if the rate remains the same and Calls only if the rate is increased.
5. US Prelim University of Michigan Consumer Sentiment
02/15/2013 – Friday at 2:55 pm GMT
What will it affect: S&P 500, DOW JONES
Forecast: 74.6 from a previous of 71.3
Where to keep an eye on the event: Forex Factory, Bloomberg, Reuters
Why traders care and what to expect: It’s a survey of about 500 consumers conducted by the University of Michigan and it tends to have a high impact on the market because consumer confidence is indicative of future consumer spending and thus future levels of retail sales will be influenced. Better than expected values can have a positive effect on the economy.
Directional bias: UP if the actual value is higher than 74.6
DOWN if the actual value is lower than 74.6
How I would trade this event: I would buy an hourly Put on DJIA if the number will be lower than 70.
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Keep Tracking of the Upcoming Binary Options Trading Events and discuss their Outcome with Bogdan and Friends on our Forum!
***Note: The exact time for the release of the Earnings reports is not announced at the moment. It is possible that the date will be updated as well. Keep an eye on the mentioned financial websites for the actual release.