The Weekly Top 5 Binary Options Trading Forecasts 03/10-16/2014
The Must Watch Top 5 Events of the Week
1. Bank of Japan Monetary Policy Statement
03/11/2013 – Tuesday early morning GMT (exact time is not announced)
What will it affect: JPY, Japanese stocks and indices
Forecast: unchanged
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: The Statement holds important insights into the Bank’s decision on interest rates, commentaries upon the economic conditions that led to their decision and most important, it offers hints on the outcome of future monetary direction. Being the main method used by the Bank of Japan to communicate with investors about monetary policy it may generate volatility.
Directional bias: UP if the Statement contains a positive outlook
DOWN if the Statement contains a negative outlook
How I would trade this event: I don’t trade at the time of such events. Once volatility is back to normal I will trade accordingly.
2. UK Inflation Report Hearings
03/11/2014 – Tuesday at 10:00 am GMT
What will it affect: GBP, FTSE
Forecast: no forecast is announced 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: Mark Carney, Bank of England Governor and members of the Monetary Policy Committee will testify before the Parliament’s Treasury Committee. The matters approached will regard inflation and economic outlook; Mark Carney’s attitude will be closely watched by market participants thus greatly affecting the Pound’s behavior. The hearings can last up to a few hours and I recommend staying aside until they end.
Directional bias: UP if Mark Carney’s attitude is hawkish
DOWN if Mark Carney’s attitude is dovish
How I would trade this event: I will not trade until the hearings are over.
3. RBNZ Interest Rate Decision and Statement
03/12/2014 – Wednesday at 8:00 pm GMT
What will it affect: NZD, New Zealand stocks and indices
Forecast: anticipated to change to 2.75% from previous 2.50%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: The RBNZ Rate Statement contains insights into the economic reasons that influenced the Bank’s Rate decision and will possibly offer hints about future rate changes. The Rate itself is often priced in the market and that’s why it tends to be overshadowed by the Statement.
Directional bias: UP if the Rate increases or the Statement contains a positive outlook
DOWN if the Rate decreases or the Statement contains a negative outlook
How I would trade this event: I don’t trade at the time of such events. Once volatility is back to normal I will trade accordingly.
4. Australian Employment Change
03/13/2014 – Thursday at 12:30 am GMT
What will it affect: AUD, Australian stocks and indices
Forecast: 15.3K from the previous -3.7K
Where to keep an eye on the event: CommuniTraders, Bloomberg, DailyFX, Forex Factory, Reuters
Why traders care and what to expect: A higher number of employed people leads to higher consumer spending and thus to a thriving economic activity. This indicator usually has a noticeable impact in the market due to its significance and earliness of release.
Directional bias: UP the actual value is higher than 15.3K
DOWN if the actual value is lower than 15.3K
How I would trade this event: I would buy a 15min Call on AUD/USD if the expected value will be reached.
5. United States Retail Sales
03/13/2014 – Thursday at 12:30 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 0.2% from the previous -0.4%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX, Forex Factory
Why traders care and what to expect: Sales made at a retail level are the driving force behind any economy and the US is not an exception because consumer spending represents about two thirds of the entire economic activity. This is considered a high-impact indicator which creates strong movement almost always. Keep an eye on the Core version, released at the same time.
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 place an hourly Call on USD/JPY if the value will be higher than 0.2%
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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.