The Weekly Top 5 Binary Options Trading Forecasts 07/21-25/2014

The Must Watch Top 5 Events of the Week

 

1. US Consumer Price Index (year over year)

07/22/2014 – Tuesday at 12:30 pm GMT

 

What will it affect: USD, US stocks and indices

Forecast: not expected to change from previous 2.1%

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, DailyFX

 

Why traders care and what to expect: This indicator tracks the changes in the price of goods and services regularly purchased by typical American households and therefore it also reflects the purchasing power of the US Dollar. It is known that FOMC pays more attention to the Core version of this indicator as it excludes food and energy prices which tend to be volatile and distort the underlying trend. The Core CPI is released at the same time and traders should keep an eye on it as well.

 

Directional bias:  UP the actual value is higher than 2.1%

                                  DOWN if the actual value is lower than 2.1%

 

How I would trade this event: I would buy an end of day Call on S&P 500 if the value will be higher than 2.1%

 

 

 

2. Bank of England’s MPC Meeting Minutes

07/23/2014 – Wednesday at 8:30 am GMT

 

What will it affect: GBP, FTSE

Forecast: 0 – 0 – 9

Where to keep an eye on the event: CommuniTraders, Forex Factory, DailyFX, Bloomberg, Reuters, BoE official website

 

Why traders care and what to expect: Although the latest Interest Rate decision had little to no effect on the market, MPC Meeting Minutes release might still move the market because it could shed some light over the Bank’s current and future economic view. The stance of each MPC member is important and a change from the current 0 – 0 – 9 breakdown of votes might signal an earlier-than-expected Rate hike for UK.

 

Directional bias: UP if the Minutes contain positive expectations

                                 DOWN if the Minutes contain negative or stagnant expectations

 

How I would trade this event: If volatility will be present, I will wait until a clear direction has established on a Pound related pair and I will trade accordingly.

 

 

 

3. RBNZ Official Cash Rate Decision and Statement

07/23/2014 – Wednesday at 9:00 pm GMT

 

What will it affect: NZD

Forecast: anticipated to change to 3.50% from previous 3.25%

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX

 

Why traders care and what to expect: Market analysts anticipate another increase of New Zealand’s Official Cash Rate, adding to a rally that had started a few months back from 2.50% and apparently is not expected to stop or at least stagnate for awhile. These rate hikes are due to New Zealand’s economic expansion and RBNZ’s constant efforts to sustain this expansion. The decision will be accompanied by a Rate Statement which will be accessible on RBNZ official website.

 

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 time of such events. Once volatility is back to normal and a clear direction is established I will trade accordingly.

 

 

 

4. German Flash Manufacturing PMI

07/24/2014 – Thursday 07:30 am GMT

 

What will it affect: EUR, DAX

Forecast: 52.2 from previous 52.0

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX

 

Why traders care and what to expect: Both Germany and France will release flash PMI for Manufacturing and Service Sector (France PMI’s release time is 7 am GMT). For all of them, a number above 50.0 indicates industry expansion and a number below 50.0 indicates contraction. Both countries are expected to print a slight improvement in their business conditions, and this being the Flash version of PMI’s (the earliest one) it is very likely to see volatility sparkle at the time of the release.

 

Directional bias: UP if the actual value is higher than 52.2

                                 DOWN if the actual value is lower than 52.2

 

How I would trade this event: I would buy an hourly Call on EUR/JPY if the values of both German and French Manufacturing PMI will exceed expectations.

 

 

 

5. UK Gross Domestic Product (quarter over quarter)

07/25/2014 – Friday at 8:30 am GMT 

 

What will it affect: GBP, FTSE

Forecast: unchanged 0.8%

Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX

Why traders care and what to expect: There are three versions of this indicator, released a month apart of each other; this is the earliest (Preliminary version) and tends to have a higher market impact than the other two. This quarterly report is likely to be a strong market mover as it is one of the primary gauges of UK’s economic health and performance.

 

Directional bias:  UP if the actual value is higher than 0.8%

                                 DOWN if the actual value is lower than 0.8%

 

How I would trade this event: I would buy an hourly Put on FTSE if the value will be lower than 0.7%.

 

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Follow Bogdan’s Top Trading  Events Live on CommuniTraders Trading Platform!

 

 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.

 

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