Weekly Top 5 Binary Options Trading Market Moves 3/18-22/2013
The Must Watch Top 5 Events of the Week
1. Reserve Bank of Australia’s Monetary Policy Meeting Minutes
03/19/2013 – Tuesday at 00:30 am GMT
What will it affect: AUD
Forecast: no forecast is made for this type of event
Where to keep an eye on the event: RBA’s official website
Why traders care and what to expect: The Meeting Minutes contain details regarding the RBA Board’s latest meeting and, most important, their view on the health of the economy and projections for future growth (or stall), as well as the motives that influenced the rate decision.
Directional bias: UP if the Minutes contain positive expectations
DOWN if the Minutes contain negative or stagnant expectations
How I would trade this event: I would place a Daily Call on AUD/USD and one on AUD/JPY if the Minutes will be hawkish.
2. German ZEW Economic Sentiment
03/19/2013 – Tuesday at 10:00 am GMT
What will it affect: EUR, DAX
Forecast: 47.9 from a previous of 48.2
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: The ZEW Economic Survey gained a lot of respect over time for its ability to move the market and its importance comes mainly from the fact that it is based on the opinions of about 275 German institutional investors and financial analysts. They will make a 6-month prediction regarding inflation, exchange rates, interest rates and stock movement.
Directional bias: UP number will be higher than 47.9
DOWN if the value will be lower than 47.9
How I would trade this event: 15 minute Calls (in sequence, until one of them ends up OTM) on EUR/USD if the actual value is above 50
3. Bank of England’s MPC Meeting Minutes
03/20/2013 – Wednesday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: 0 – 0 – 9
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters, BoE official website
Why traders care and what to expect: The Meeting Minutes usually contain details about the members’ votes and insights on the reasons that influenced their vote. The first number represents how many members voted for a rate increase, second is how many voted for a decrease and the third is how many voted for holding the rate unchanged. The Minutes will also contain details on the votes regarding the Asset Purchase Facility.
Directional bias: UP if the Minutes contain positive expectations
DOWN if the Minutes contain negative or stagnant expectations
How I would trade this event: I would buy a 15 minute Put on GBP/USD if the Minutes will be dovish or at least one member voted in any other way than to hold the rate unchanged.
4. US Federal Funds Rate
03/20/2013 – Wednesday at 6:00 pm GMT
What will it affect: USD, all US Indices, some US Stocks
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: The Federal Rate will most likely remain unchanged but the other related events (released at the same time) are probably going to be the main market movers: FOMC Economic Projections (containing the outlook for the next 2 years) and the FOMC Statement (containing the reasons behind the votes). Half an hour later the Fed Chairman Ben Bernanke will hold a Press Conference that can create volatility similar to the one experienced during the ECB Press Conferences.
Directional bias: UP if the rate will be increased or if the other events will contain a positive outlook
DOWN if the rate is decreased or if the other events will contain a negative or stagnant outlook
How I would trade this event: I would wait for a clear direction to be established and then trade accordingly.
5. UK Retail Sales
03/21/2013 – Thursday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: 0.5% from a previous of -0.6%
Where to keep an eye on the event: Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: This is one of the best ways to measure consumer spending and this type of spending accounts for a major part of the entire economy. Higher retail sales numbers are indicative of a higher consumer demand and increased economic activity. Better than expected values are likely to strengthen the Sterling, UK indices and UK stocks of major retail companies.
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 buy an hourly Call on GBP/USD if the value will be higher than 0.7%.
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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.