Weekly Top 5 Binary Options Analysis 08/05-09/12/2013

The Must Watch Top 5 Events of the Week Including Analysis

 

1. Reserve Bank of Australia Interest Rate Statement

08/06/2013 – Tuesday at 04:30 am GMT

 

What will it affect: AUD    

Forecast: unchanged 2.75% 

*Note: At the moment, Daily FX lists an anticipated decrease to 2.50%

Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, Daily FX, RBA Official website

 

Why traders care and what to expect: Both the Interest Rate and the Rate Statement are released at the same time but the main event is usually the latter. If the Rate is changed, the decision will gain additional importance. The Statement is the primary tool the Reserve Bank of Australia uses to communicate about monetary policy direction and future rate changes.  

 

Directional bias:  UP if the Rate is increased or if the Statement contains a hawkish outlook

                                   DOWN if the Rate is decreased or if the Statement contains a dovish outlook

 

How I would trade this event: I would only trade once volatility calms down and a direction is established.

 

 

 

2. United States Trade Balance

08/06/2013 – Tuesday at 12:30 pm GMT

 

What will it affect: USD, US Stocks and indices

Forecast: -43.1B from the previous of -45.0

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

 

Why traders care and what to expect: The Trade Balance shows the difference between the total volume of imported and exported services and goods. A Trade Balance above zero indicates that exports have a higher value than imports and it’s very positive for the US economy. The indicator is deep into negative territory but an increase usually strengthens the greenback.

 

Directional bias: UP if the actual value is higher than -43.1B

                                 Down if the actual value is lower than -43.1B

 

How I would trade this event: I would buy a four hour Put on EUR/USD and a Call on S&P 500 if the value will be higher than -40 Billions.

 

 

 

3. Bank of England Inflation Report and Press Conference

08/07/2013 – Wednesday at 09:30 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, Daily FX, Bloomberg, Reuters

 

Why traders care and what to expect: The Inflation Report contains the Bank of England economic growth projections for the next two years and also important insights about their view on inflation. At the same time, Governor Carney and MPC members will hold a Press Conference, discussing the Report.

 

Directional bias: UP if the Report contains a positive outlook and Gov Carney has a hawkish attitude.

                                 DOWN if the Report contains a negative outlook and Gov Carney has a dovish attitude.

 

How I would trade this event: I will not trade at the time of the Press Conference; instead I will wait to see the effect and trade accordingly.

 

 

 

4. Bank of Japan Monetary Policy Statement

08/08/2013 – Thursday

 

What will it affect: JPY, Japanese indices and stocks

Forecast: no forecast is announced for this type of event

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

 

Why traders care and what to expect: Bank of Japan members meet in order to decide the future direction of the monetary policy and to establish a “Guideline for Money Market Operations”. The exact time is not known at the moment but usually it is released very early in the morning (GMT).

 

Directional bias: UP if the Statement contains a hawkish outlook

                                  DOWN if the Statement contains a dovish outlook

 

How I would trade this event: I would only trade when a clear direction is determined.

 

 

 

5. European Central Bank Monthly Bulletin

08/08/2013 – Friday at 08:00 am GMT

 

What will it affect: EUR, DAX

Forecast: no forecast is announced for this type of event

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

 

Why traders care and what to expect: The Monthly Bulletin shows the statistical data that was evaluated when the Governing Council made the Interest Rate decision and more important, it contains analysis of current and future economic conditions. All this shapes investor’s sentiment about the Euro and thus, determines the future direction of Euro related pairs.

 

Directional bias: UP if the Bulletin contains a hawkish outlook

                                   DOWN if the Bulletin contains a dovish outlook

 

How I would trade this event: I would buy a four hour Put on EUR/USD if the Bulletin doesn’t contain a clearly hawkish outlook

 

                 

 

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Keep Tracking of the Upcoming Binary Options Trading  Events on CommuniTraders Social Trading Platform!

 

Note : The times, dates and values can change during the week. Keep an eye on the mentioned financial websites for any modifications.

 

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