Weekly Top 5 Binary Options Analysis 08/12-16/2012

The Must Watch Top 5 Events of the Week Including Analysis

 

1. German ZEW Economic Sentiment

08/13/2013 – Tuesday at 09:00 am GMT

 

What will it affect: EUR, DAX      

Forecast: 40.3 from the previous 36.3         

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

 

Why traders care and what to expect: This is a survey based on the opinions of about 275 German institutional analysts and investors who are asked to rate the economic conditions and provide a 6-month outlook. Due to the nature of their jobs, they are highly informed and their opinion has a lot of weight.  

 

Directional bias:  UP if the actual value is higher than 40.3

                                   DOWN if the actual value is lower than 40.3

 

How I would trade this event: I would buy hourly Calls on EUR/USD and DAX if the actual number is higher than 42.0

 

 

 

2. US Retail Sales

08/13/2013 – Tuesday at 12:30 pm GMT

 

What will it affect: USD, US Stocks and indices

Forecast: 0.2% from the previous of 0.4%

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

 

Why traders care and what to expect: Consumer spending represents about two thirds of the entire US economic activity and Retail Sales make up for a hefty one third of all consumer spending. Tuesday’s indicator acts as a measure of consumer demand and it is known to have a high impact on the market; it’s a closely watched and highly respected indicator.

 

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 four hour Call on DJIA if the value will be higher than 0.3%.

 

 

 

3. German Preliminary Gross Domestic Product

08/14/2013 – Wednesday at 06:00 am GMT

 

What will it affect: EUR, DAX

Forecast: 0.6% from the previous 0.1%

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

 

Why traders care and what to expect: The Gross Domestic Product is the main gauge for a country’s economy. This indicator measures the total value of services and goods produced by Germany and although it’s value can be anticipated with a relatively high accuracy, its significance cannot be denied. There are 2 versions of the GDP, Preliminary and Final, released about 10 day apart. Out of the 2, the Preliminary tends to have the highest impact.

 

Directional bias: UP if the GDP is higher than 0.6%

                                 DOWN if the GDP is lower than 0.6%

 

How I would trade this event: I would buy a four hour Put on EUR/USD if the GDP value will be lower than anticipated

 

 

 

4. Bank of England Meeting Minutes

08/14/2013 – Wednesday at 08:30 am GMT

 

What will it affect: GBP, FTSE

Forecast: 0-0-9

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

Why traders care and what to expect: The Minutes contain the details of the MPC members’ votes on the latest interest rate decision and on the Asset Purchase Facility and also important insights regarding the reasons that determined their votes. In the 0-0-9 format, the first number shows how many members voted for an increase of the rate (or APF), the second number shows how many voted for a decrease and third is the number of members who voted for holding the rate (or APF). The Minutes often contain clues about future rates and market direction.

 

Directional bias: UP if the Minutes are more hawkish than anticipated

                                 DOWN if the Minutes are more dovish than anticipated

 

How I would trade this event: I would buy Calls on GBP/USD and FTSE if the Minutes are hawkish. The expiry time would be determined taking into consideration the strength of the move.

 

 

 

5. US Consumer Price Index (year over year)

08/15/2013 – Thursday at 12:30 pm GMT

 

What will it affect: USD, S&P500, DJIA

Forecast: 2.0% from the previous 1.8%

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

 

Why traders care and what to expect: The Consumer Price Index is a very important gauge of inflation; a higher CPI indicates that inflation is rising and consumers pay more for the products they purchase. A high inflation can determine the FED to increase interest rates in an attempt to counter the effects. The CPI includes over 200 categories of goods, divided into 8 main categories, each with different weight in the final calculation.

 

Directional bias: UP if the CPI value is higher than 2.0%         

                                   DOWN if the CPI value is lower than 2.0%

 

How I would trade this event: I would buy a four hour Put on USD/JPY if the CPI value is lower than 1.8%

 

                 

 

 

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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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