Binary Options Market Outlook – August 16 – 20

This week a handful of economic reports and earnings reports will affect the markets . The home-builders’ index for August, scheduled for Monday, is expected to tip higher. Housing starts for July are set for Tuesday, with economists penciling in a rise in the pace of new home construction. Wal-Mart Stores Inc. releases its second-quarter reports on Tuesday, with analysts estimating that the world’s largest retailer’s earnings will rise 10% from the same period a year ago to 97 cents a share. Home-improvement retailer Home Depot Inc. also reports its results on Tuesday, and is forecast to earn 71 cents a share.

Lets look at how this will affect the majors:

Stocks:

U.S. stocks will likely extend consolidation after breaking down the upward trend last week. The S&P500 index will likely continue to hover around 1,080, with investors looking for queues from earnings to break his consolidation.

Currencies:

After falling 4% last week, the EUR/USD pair will likely consolidate and trade sideways this week. Look out opportunities trading within this consolidation range around the $1.27 – $ 1.29 area.

Commodities:

Gold futures look like they are building strength to clear the 1,200 area and head higher.

Oil futures are consolidating above the $75 area, after losing ground last week and failing to clear $83 2 weeks ago.