Weekly Top 5 Binary Options Trading Market Moves 2/25-3/1/2013
The Must Watch Top 5 Events of the Week
1. FED Chairman Ben Bernanke Testifies
02/26/2013 – Tuesday at 3:00 pm GMT
What will it affect: USD
Forecast: No forecast is made for this type of event
Where to keep an eye on the event: Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: The FED Chairman will testify before the Senate Banking Committee in Washington DC. He will read an introductory statement and then he will answer questions asked by the Committee members. These questions are not known in advance and his answers will probably create strong moves. Almost always when Ben Bernanke speaks publicly, volatility immediately rises.
Directional bias: UP if the Chairman is hawkish
DOWN if the Chairman is dovish
How I would trade this event: I would wait for clear indications of direction and trade accordingly after things calm down. Better to be safe than sorry.
2. US Core Durable Goods Orders
02/27/2013 – Wednesday at 1:30 pm GMT
What will it affect: DOW JONES, S&P 500
Forecast: 0.3% from previous 1.0%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: Goods with a life expectancy of at least 3 years are considered durable goods and an increase in orders is indicative of a thriving economy. In times of economic instability people think more about their primary needs and not so much about buying durable items so better than expected numbers are a sign of a healthy economy. The Core value doesn’t take into account transportation items.
Directional bias: UP if the actual value will be higher than 0.3%
DOWN if the actual value will be lower than 0.3%
How I would trade this event: Hourly Call on DOW JONES if the value will be higher or at least equal to 1.0%
3. Euro zone Core Consumer Price Index
02/28/2013 – Thursday at 10:00 am GMT
What will it affect: EUR, DAX
Forecast: unchanged, 1.5%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: The Core indicator excludes from calculation the food and energy values because these are thought to influence to much the final result. Consumer price is probably the most important gauge for inflation, in other words if the CPI rises, it means that Euro’s buying power declines. Rising prices can eventually determine the central bank to increase the interest rate.
Directional bias: UP if the actual value will be higher than 1.5%
DOWN if the actual value will be lower than 1.5%
How I would trade this event: I would buy a 15 minute Put on EUR/USD if the value will be lower than 1.2%
4. Chinese Manufacturing Purchasing Managers’ Index
03/01/2013 – Friday at 01:00 am GMT
What will it affect: HANG SENG, CNY
Forecast: 50.5 from the previous 50.4
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: It’s a leading indicator of economic health based on the opinions of about 820 purchasing managers from the manufacturing industry which are asked to rate the business conditions. Above 50 indicates optimism and if the value is below 50, it’s a sign of industry decline.
Directional bias: UP if the actual number is higher than 50.5
DOWN if the if actual number is lower than 50.5
How I would trade this event: I would buy a 15 minute Put on Hang Seng if the actual value will be below 50.
5. Canadian Gross Domestic Product
03/01/2013 – Friday at 1:30 pm GMT
What will it affect: CAD
Forecast: -0.1% from a previous of 0.3%
Where to keep an eye on the event: Forex Factory, Bloomberg, Reuters
Why traders care and what to expect: The GDP is the primary gauge of an economy’s health. Hefty increases in the GDP values are indicative of increased and profitable economic activity and eventually more demand for the country’s currency. The GDP release is more likely to move the market if the difference between the actual and forecast numbers is a big one.
Directional bias: UP if the actual value is higher than -0.1%
DOWN if the actual value is lower than -0.1%
How I would trade this event: I would buy a 15 minute Put on USD/CAD if the number will be higher than 0.3%.
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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.