Binary Options Daily Review – June 30, 2010
U.S. stocks slumps to lowest level of 2010
U.S. stocks fell sharply to finish at their lowest level of the year Tuesday after a drop in consumer confidence here and in leading indicators in China dimmed hopes of a global economic recovery.
USD falls to lowest level in 2010 against the Yen. Rises against other majors
The dollar and the Japanese yen rose Tuesday, extending gains, adding to investors’ desire of safe havens amid worries over global growth prospects, this time stemming from data in China and concerns about the health of European banks.
Gold retreats on rising dollar
Gold falls, along with other commodities and U.S. stocks, as a stronger dollar curbs gains that accompany ongoing concerns about the debt crisis in Europe.
Oil drops nearly 3% on China growth worries
Crude futures trade below $76 a barrel, as sharp declines in global equity markets and diminishing worries over a storm in the Gulf of Mexico encourage investors to sell out of positions in oil.
Indices are now available on StartOptions.com
StartOptions is happy to announce the launch of options on the following indices:
Binary Options Daily Review – June 29, 2010
U.S. stocks end the day lower
A late-day pullback left major stock indexes slightly lower at Monday’s close as traders fretted that the Group of 20’s pledge to cut deficits could crimp global growth.
USD lower against the Yen, Higher against the Euro
The dollar dropped to an eight-week low against the yen in Asia Tuesday. The dollar had risen against major rivals Monday, with gains seen especially against the euro, after a pledge by leaders of the Group of 20 major economies to cut deficits fueled growth uncertainty.
Gold gains more than 1% on Monday
Gold futures declined more than 1% Monday, as the dollar strengthened against other major currencies and stocks recovered from earlier lows.
Oil down 1% as Gulf tropical storm worries ease
Crude futures declined Monday as mildly positive economic data in the U.S. failed to lift markets and bearish sentiment prevailed after concerns about a tropical storm brewing near the Gulf of Mexico eased.
Binary Options Daily Review – June 28, 2010
Bank stocks surged Friday, boosted by relief over a deal on new financial-regulation overhaul, but the gains failed to wipe out more than a fraction of the broader market’s heavy losses for the week. A flurry of conflicting economic data left the benchmark indexes mixed.
U.S. dollar falls for 3rd straight week
The dollar fell against the euro on Friday, ahead of meetings of the Group of Eight and Group of 20 leading industrialized nations in Toronto that are expected to focus on efforts to support economic growth while acknowledging the problems that can follow oversized deficits. For the week, the dollar index has slipped for a third week, from 85.699. Last Friday, the euro traded at $1.238. The dollar has also lost ground against the yen, falling for a third week from ¥90.83.
Oil rallies more than 3%
Crude-oil and gasoline futures settled more than 3% higher on Friday, as investors worried about a potential tropical storm brewing in the Caribbean. Light, sweet crude for August delivery added $2.35, or 3.1%, to $78.86 a barrel on the New York Mercantile Exchange, arriving at a weekly gain of 2.2%.
Gold close to record high
Gold futures on Friday ended tantalizingly close to a fresh record, as the precious metal continued to benefit from strong investor demand and jitters ahead of a gathering of world leaders. Gold for August delivery added $10.30, or 0.8%, to settle at $1,256.20 an ounce on the Comex division of the New York Mercantile Exchange.
Weekly Outlook June 28 – July 2
The beginning of the new month is busy as always, culminating with the Non-Farm Payrolls. There are lots of other major events as well. Here’s an outlook for the market-moving events that are awaiting us.
The Chinese central bank lifted the peg on the yuan, in a move that was anticipated for a long time. Commodity currencies enjoyed it, while others currencies had only limited gains against the dollar. This gap will probably continue this week as well. Let’s start:
- American Personal Spending: Published on Monday at 12:30 GMT. This is an important indicator of the economy – more spending means more economic activity. In the past three months, the growth rate of spending fell short of expectations, and became worrying last month when it remained unchanged. A drop in spending will rock the markets.
- American CB Consumer Confidence: Published on Tuesday at 14:00 GMT. The Conference Board has shown great optimism in recent months. The index reached 63.3 points, the highest level in over two years. This major survey of 5,000 consumers is expected to drop this time to 62.6 points.
- British Final GDP: Published on Wednesday at 8:30 GMT. The final version of Britain’s GDP is expected to confirm the improved second release and show a growth rate of 0.3% in the first quarter. Only an upwards revision of the weak growth rate will boost the Pound. The next quarters will probably be worse in Britain, with budget cuts expected to dampen the recovery.
- Swiss KOF Economic Barometer: Published on Wednesday at 9:30 GMT. This composite index is highly regarded and moves the Swissy. Last month saw a significant rise from 2.05 to 2.16 – a score which was better than expected. The Swiss economy is doing well, and so is their currency, especially against the Euro. A small dip to 2.14 is expected now.
- American ADP Non-Farm Payrolls: Published on Wednesday at 12:15 GMT. The report for the private sector is sometimes called the “mini Non-Farm Payrolls”. In many months, it didn’t predict the direction of the NFP, but this changed last month, as the weak growth in the private sector was reflected in the NFP 2 days later. Three months of job gains will probably be followed by a fourth one. Expectations stand on a gain of 61K jobs.
- Canadian GDP: Published on Wednesday at 12:30 GMT. Canada’s GDP for the month of March, that finished Q1, was excellent – 0.6%. This exceeded expectations and completed an annual growth rate of 6.1% in Q1. A modest rise of 0.2% is expected this time.
- Japanese Tankan Manufacturing Index: Published on Wednesday at 23:50 GMT. This fresh quarterly indicator always rocks the markets. 1,200 large manufacturers have shown less pessimism in Q1 as the core climbed from -24 to -14, as expected. The number for Q2 is expected to be slightly better, but still in the negative zone: -3.
- American Unemployment Claims: Published on Thursday at 12:30 GMT. This weekly figure is still causing trouble for the dollar. Jobless claims refuse to drop below 430K, and even rise. A significant drop is necessary in order to see a big leap in the NFP. This is the last job-related figure before the NFP. A small rise from 457K to 461K is expected now.
- American Pending Home Sales: Published on Thursday at 14:00 GMT. The number of closed contracts for homes leaped in the past three months at very strong rates – 8.2%, 5.3% and 6%. This time, a drop will probably be seen, cooling down the markets, although its scale will probably be minor – 0.5%.
- American ISM Manufacturing PMI: Published on Thursday at 14:00 GMT. Purchasing managers in the manufacturing sector have been positive in the past 10 months, sending the score above 50 – meaning economic expansion. Last month saw a small, yet expected drop from 60.4 to 59.7 points. Another drop is expected now.
- Non-Farm Payrolls: Published on Friday at 12:30 GMT. The number one event in forex was worrying last month. A big jump was recorded – 432K, but this came almost only from the public sector the government’s hiring for the decennial census. Private sector growth was weak. One point of light was seen though – the unemployment rate unexpectedly dropped to 9.7%. Without government aid, Non-Farm Payrolls are now expected to correct and drop by 100K. The unemployment rate is expected to rise to 9.7%.
That’s it for the major events this week. Stay tuned for outlooks on specific currencies.
This market review was brought to you by our partner: ForexCrunch.com.
Binary Options Daily Review – June 24, 2010
U.S. stocks end down after FED outlook
U.S. stocks finished Wednesday’s session mostly lower, hit by a record slide in sales of new homes in May and after the Federal Reserve downgraded its economic outlook due to the impact of the European debt crisis. The central bank’s policy committee left its key interest-rate target near zero, as expected.
USD down vs Euro, GBP
The dollar turned notably lower versus the euro on Wednesday after the Federal Reserve turned less positive in its assessment of the U.S. economic outlook. Also, the British pound gained against the U.S. dollar and euro after minutes from the Bank of England’s latest interest-rate meeting showed one member wanted to raise rates.
Gold fell on Wednesday
The dollar shook off initial weakness to rise Wednesday, and gold resumed its traditional inverse correlation with the U.S. dollar.
Oil ends sharply lower
Oil futures fell nearly 2% Wednesday as reports showing a supply glut and a record low for U.S. housing sales rekindled fears of weak demand for energy products. A Federal Reserve statement about the state of the economy only added to these worries.
Binary Options Daily Review – June 23, 2010
U.S. stocks end sharply lower
U.S. stocks finished Tuesday’s session sharply lower as energy stocks sank after a federal judge struck the Obama administration’s moratorium on deepwater drilling projects in the Gulf of Mexico. Stocks were already under pressure after disappointing housing data although a report showing strength in regional manufacturing had lent some support to the market.
Dollar steady ahead of Fed
gains in the dollar were unlikely for the rest of the day, as many investors bet the U.S. Federal Reserve may take a more cautious tone on the economy at the end of a regular policy meeting later in the day.
Gold advances slightly
Gold futures rose 10 cents Tuesday after swerving most of the session amid low volumes, as investors seemed to be unable to make up their minds ahead an interest-rate decision in the U.S. and contract expiration later this week.
Oil loses 1% on Tuesday
Crude-oil futures ended 1% lower Tuesday, giving up on the $78-a-barrel level as stocks moved deeper into the red and no positive catalyst for oil emerged.
Binary Options Daily Review – June 22, 2010
U.S. stocks drop on Yuan news
U.S. stocks turned lower Monday as investors considered the pace at which China would revalue its currency and a downgrade of French banking giant BNP Paribas reignited worries about Europe’s debt troubles.
Dollar falls vs. Euro on Monday
The U.S. dollar gained on the euro and Australian dollar in early Asian trading Tuesday, taking back some of the ground lost in the previous session following China’s weekend announcement that it will ease its de-facto currency peg to the greenback.
Gold falls 1.4% from record high
Gold futures on Monday notched their worst one-day decline since mid-May, a reversal sure to delay gold’s hopes of reaching the $1,300-an-ounce mark before the first half of the year is out. Silver down, loses nearly 2%.
Oil jumps on Monday, then reverses
Crude-oil futures managed to keep modest gains Monday as investors weighed whether optimism after China’s decision to allow more flexibility for its currency warranted the earlier, sharp moves higher.
Weekly Outlook June 21 – 25
The upcoming week is quite busy: a rate decision in the US, housing figures and the presentation of an emergency budget in the UK among other events. Here’s an outlook for the major market moving events this week.
The market disregards the European troubles. In the past week, the focus was on the Spanish credit crunch. Nevertheless, the Euro continued recovering, and so did other currencies, that truly enjoy good economies, such the loonie, which is ready for parity. American figures will dominate the scene this week. Let’s start:
- German Ifo Business Climate: Published on Tuesday at 8:00 GMT. This important indicator has been more optimistic than other German surveys in the past months, but it also stopped rising last month. It’s now expected to edge down from 101.5 to 101.2 points, as uncertainty grows in Europe.
- British Emergency Budget: Published on Tuesday at 11:30 GMT. Squeezing the budget deficit is a top priority for the new government. George Osborne, UK’s Chancellor of the Exchequer, will go to parliament and present the cuts. The budget release includes updated economic forecasts, which will rock the Pound.
- American Existing Home Sales: Published on Tuesday at 14:00 GMT. Small surprises have been seen in this important housing sector indicator. This time, a big leap is expected – from 5.77 to 6.23 million, the highest in 6 months. High volatility is expected around the release.
- American New Home Sales: Published on Wednesday at 14:00 GMT. Complementing Tuesday’s release, this indicator is expected to be different this time, and drop from 504K to 435K. Note that the impact will be rather muted due to the upcoming to rate decision. Nervous trading is predicted.
- American rate decision: Published on Wednesday at 18:15 GMT. Ben Bernanke’s Federal Reserve isn’t expected to move. Not so soon. Employment is still problematic in the US, and inflation doesn’t pose a threat. Yet again, the focus won’t be on the Federal Funds Rate, but on the accompanying FOMC Statement. The wording about leaving the interest rate low for an “extended period of time”, will probably remain despite some members’ will to drop it. Watch out for a few hours of action.
- New Zealand GDP: Published on Wednesday at 22:45 GMT. New Zealand is rather late with its GDP release for Q1. After a rise of 0.8% in Q4 of 2010, the growth rate is expected to be weaker – 0.5%. This goes hand in hand with Australia’s weaker growth rate. The Aussie will also move after this release.
- American Unemployment Claims: Published on Thursday at 12:30 GMT. As in every week, this release is closely watched. Another disappointment was seen in the past week, with jobless claims rising to 472K. A small drop to 461K will probably be seen now. Only a drop under 430K will convince everybody that a real recovery arrived.
- American Durable Goods Orders: Published on Thursday at 12:30 GMT. This release will probably be very confusing. Durable Goods Orders jumped by 2.8% last time, and are expected to correct with a drop of 1% this time. Core Durable Goods Orders fell by 1.1% last time and are expected to rise in the same scale this time. Only a move of both figures in the same direction will move the markets.
- Tokyo Core CPI: Published on Thursday at 23:30 GMT. The Japanese government’s efforts to tackle the deflation will probably be partially fruitful. The annualized level of prices is expected to show a drop of 1.5%, better than last month’s 1.6% number. This is the earliest inflation figure in Japan, and tends to have a strong impact.
- American GDP: Published on Friday at 12:30 GMT. This is the third and final release of American GDP for the third quarter. The second release was worse than the first one, and showed an annual growth rate of only 3% in Q1, much weaker than the previous quarter’s leap. This growth rate will probably be confirmed now.
That’s it for the major events for this week. Stay tuned for specific currency updates.
This market review was brought to you by our partner: ForexCrunch.com
Binary Options Daily Review – June 17, 2010
U.S. stocks hold at current levels
U.S. stocks closed mixed Wednesday as gains in American Express and Caterpillar helped push the Dow Jones Industrial Average slightly higher, but the Standard & Poor’s 500 index was weighed down by consumer stocks.
BP shares pointing down after dividend statement
BP PLC shares edged lower late Wednesday, following a dayside climb after the company outlined changes in its dividend policy. Earlier Wednesday, the oil giant agreed to set aside $20 billion in an escrow account for claims related to the oil spill in the Gulf of Mexico.
Euro down versus dollar, yen
The euro fell against the yen and dollar in Asia Thursday as short-term investors trimmed holdings of the risk-sensitive euro due to renewed concerns over European debt woes.
Oil reaches $77
Oil prices settled higher Wednesday as investors discounted an unexpected rise in crude inventories and futures ran higher with U.S. stocks.
Gold ends lower
Gold prices inched down Wednesday after dipping in and out of the red most of the session as investors seemed to go for stocks and other rising riskier assets.
