Weekly Top 5 Binary Options Trading Market Moves 3/11-15/2013
The Must Watch Top 5 Events of the Week
1. United States Retail Sales
03/13/2013 – Wednesday at 12:30 pm GMT
What will it affect: S&P 500, Dow Jones, some US stocks of companies from the retail sector.
Forecast: 0.5% from a previous of 0.1%
Where to keep an eye on the event: Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This indicator represents the monthly change in total value of sales at a retail level. The retail sector is a major component of any economy and of course the US economy is no exception. Consumer spending makes up for about 2/3 of all US economic activity and retail sales represent 1/3 of this spending; better than expected numbers are indicative of consumer confidence and willingness to spend.
Directional bias: UP if the actual value is higher than 0.5%
DOWN if the actual value is lower than 0.5%
How I would trade this event: I would place 15 minute Calls (in sequence, until one of them is unsuccessful) on S&P if the value would be higher than 0.7%
2. Swiss National Bank Rate Decision and Monetary Policy Assessment
03/14/2013 – Thursday at 8:30 am GMT
What will it affect: CHF
Forecast: no change from 0.25%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: Bank rates are the most important indicator for a currency and all previously released data is assessed in order for Central Banks to make a decision regarding the rate. At the same time, the Swiss National Bank will release a Monetary Policy Assessment (MPA) detailing the reasons behind their decision. It also contains an economic outlook and maybe hints about future rate changes.
Directional bias: UP if the rate will be increased or if the MPA will contain a positive outlook
DOWN if the rate is decreased or if the MPA will contain a negative or stagnant outlook
How I would trade this event: 15 minute Put on USD/CHF if the rate is not decreased
3. US Producer Price Index
03/14/2013 – Thursday at 12:30 pm GMT
What will it affect: USD, S&P 500, Dow Jones, some US Stocks
Forecast: 0.6% from a previous of 0.2%
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 prices charged by manufacturers for their products and it is correlated with the Consumer Price Index because higher prices charged by the producers will eventually be paid by consumers. It is a leading indicator of inflation and higher than expected numbers can be beneficial for the US currency, indices and stocks
Directional bias: UP if the actual value will be higher 0.6%
DOWN if the actual value will be lower than 0.6%
How I would trade this event: I would buy a 15 minute Put on EUR/USD if the value will be higher than 1.0%
4. Euro Zone CORE Consumer Price Index
03/15/2013 – Friday at 10:00 am GMT
What will it affect: EUR, DAX
Forecast: no change from 1.3%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: It’s the main gauge for inflation in the Euro Zone. Basically higher CPI means that one Euro buys less goods as its purchasing power diminishes and this can lead the ECB to increase the interest rate in the future. The Core indicator excludes from calculation the food and energy sectors.
Directional bias: UP if the actual number is higher than 1.3%
DOWN if the if actual number is lower than 1.3%
How I would trade this event: I would buy an hourly Call on EUR/USD if the actual value will be higher than 1.7%.
5. US CORE Consumer Price Index
03/15/2013 – Friday at 12:30 pm GMT
What will it affect: USD, S&P 500, Dow Jones
Forecast: 0.2% from a previous of 0.3%
Where to keep an eye on the event: Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This indicator is similar to the Euro Zone CPI but it regards the buying power of the greenback and it reflects the US inflation. Higher consumer prices can determine the FED to increase interest rates.
Directional bias: UP if the actual value is higher than 0.2%
DOWN if the actual value is lower than 0.2%
How I would trade this event: I would buy a 15 minute Put on EUR/USD and a 15 minute Call on USD/CHF if the number will be higher than 0.4%.
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***Note: The exact time, date and value for the release of the Earnings reports may change or it 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.