Binary Options Daily Review – May 19, 2010
Euro at a four year low!
The euro touched a new four-year low against the U.S. dollar in early Asian trading Wednesday, after new reports Tuesday that Germany will ban certain types of short-selling heightened market worries about Europe.
Oil headed south…
Not surprisingly, and as we predicted over the last few days, as the U.S. dollar strengthened, crude-oil futures fell below $68 a barrel in electronic trading Wednesday afternoon in Asia, extending their losses after closing at a seven-month low. Crude Oil Binary Options are also available for trading at StartOptions.com
Gold cooling off after a big run
Gold futures ended lower Tuesday as physical demand was seen as slack and investors pared their positions following bullion’s recent rise. “The uptrend is still intact,” said market analysts, adding that gold’s floor is likely to hover around the $1,214-an-ounce mark.
U.S. Stocks drop on tuesday
U.S. stocks landed with a thud on Tuesday, giving up earlier attempts at gains, as the euro’s slide soured sentiment among investors viewing the currency as a proxy for Europe’s sovereign-debt troubles.
U.S. Stocks headed for a weak start
U.S. stock futures drop Wednesday, the first day of the hastily-drawn-up German short-sale ban, which served to reinforce rather than dispel worries over the health of European governments and the lenders that possess their debt.
Binary Options Daily – May 11, 2010
Stock Binary Options News
European shares Tuesday gave back some outsize gains made in the previous session, with miners declining, as worries about prospects for economic growth turned to China. The Stoxx Europe 600 index lost 1.3% to trade at 250.94, after soaring 7.2% on Monday after a package to support Greece and other peripheral European countries led to big gains for banks. The losses came as China’s inflation rate accelerated in April, as consumer and producer prices beat estimates, while bank lending rose nearly 30% faster than average forecasts. The data led analysts to speculate that rate hikes are on the way, as authorities attempt to keep the country’s red-hot economy in check. Asian shares weakened after the data from China, while U.S. stock futures were pointing to a downbeat open on Wall Street following strong gains on Monday.
U.S. stocks made their biggest one-day gain in 13 months Monday, re-establishing gains for the year, after an agreement on a nearly $1 trillion rescue plan to stabilize Europe lured investors back to a badly shaken market. After last week’s wipeout of gains made in 2010, the Dow Jones Industrial Average closed up 404.71 points, or 3.9%, to 10,785.14, its biggest daily gain since March 2009, and enough to bring it safely back into positive territory for the year.
Forex Binary Options News
The EURUSD traded at $1.2740 early Tuesday, with the common currency down 0.1%. GBPUSD declined 0.2% to $1.4814 as the main political parties continue to try and form a new government. The EURJPY fell in Asia Tuesday as bank dealers and short-term investors sold the common currency amid the continued threat of more credit rating downgrades to fiscally troubled euro-zone members despite a massive bailout plan announced earlier in the week.
Commodities Binary Options News
Crude fell Tuesday in Asia as the euro weakened against the dollar. The nearly $1 trillion rescue package for the euro-zone economies, which boosted crude prices Monday, hasn’t fully convinced traders, analysts said. On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at $76.41 a barrel at 0558 GMT, down $0.39 in the Globex electronic session. June Brent crude on London’s ICE Futures exchange fell $0.36 to $79.76 a barrel. Crude oil traders are more keenly watching the euro-zone crisis developments than the data, amid expectations of continued euro-dollar volatility.
Gold futures fell on Monday but were paring their losses as some investors cautioned Europe’s financial-stabilization plan lacked details and that it could raise inflation fears. Gold for June delivery, the most active contract, dropped $12.60, or 1%, to $1,198.30 an ounce on the Comex division of the New York Stock Exchange.
Binary Options Market Review 06-May-2010
Stock Binary Options
Asian Sell-Off! Almost all of the Asian region’s major indexes fall 1%-3%. Most Asian markets trade sharply lower on increasing concerns over the spreading debt crisis in Europe, with Japanese exporters with high exposure to Europe taking a hit from the euro’s weakness. Forex Binary Options are rebounding this hour and traded around the 1.2796 level.
European shares also lost ground on Thursday as investors continued to fret about debt levels in countries on the edge of the region. The U.K. FTSE 100 index declined 0.6% to 5,309.34 on the day of a general election, while the German DAX index declined 0.4% to 5,935.26 and the French CAC-40 index lost 1% to 3,600.66. The European Central Bank will announce a decision on interest rates later Thursday.
U.S. stocks fell for a second day Wednesday as worries that Europe’s debt trouble is escalating overshadowed economic reports showing growth in the services sector and additional hiring by private firms. After a triple-digit slide and then a brief visit to positive territory, the Dow Jones Industrial Average closed down 60 points, or 0.6%, to 10,866.83. The latest action is leading U.S. market commentators to suggest that stocks are going much lower, and that the U.S. market’s pullback could be heavier than any since March 2009.
The EUR-USD fell to a fresh 14-month low against the dollar in Asia Thursday as riots in Greece fueled investor concern that the nation can’t implement fiscal reform steps smoothly and may face higher default risk. Three people were killed during demonstrations in Athens Wednesday in protest against the government’s spending-cut and tax-hike plans to avert national bankruptcy. Over the weekend, the government agreed to an EUR110 billion ($141 billion) European Union and IMF debt bailout. The development prompted investors to speculate the nation may not be able to promptly take necessary steps to avoid default, which in turn will increase worries that other debt-suffering European nations such as Portugal may experience similar fates.
Oil Binary Options
Oil prices settled under $80 a barrel on Wednesday, pulled down by a stronger U.S. dollar, concerns about the political unrest in Greece and the state of other European economies, and a higher-than-expected rise in crude inventories. Crude oil for June delivery slumped $2.77, or 3.4%, to $79.97 a barrel on the Comex division of the New York Mercantile Exchange. That is the lowest price for a most-active contract since March 15, according to FactSet Research. Losses were deeper mid-morning and in the last hour of trading. This action is leading market commentators to suggest that people are worried that the bull market is over, that maybe we are seeing the tipping point.
Gold Binary Options
Gold changed direction to settle marginally higher on Wednesday as bullion regained at least some its glow as a hedge against macroeconomic and political unrest. Gold turned as the euro bounced off lows and U.S. stocks paired losses. This has lead market commentators to suggest that the the global political and macroeconomic background is bullish for gold, it shows the viability of gold as an alternative currency. Gold for June delivery added $5.80, or 0.5%, to $1,175 an ounce on the Comex division of the New York Mercantile Exchange.
Will the EUR/USD go up or down?-April 12-16 Weekly Review
The EUR/USD pair gapped enormously today on the news of the European Union bailout of Greece announced over the weekend. This powerful move broke through a very significant 4 month descending line of resistance and can only indicate further gains to the EUR/USD. Expect strong volume for this currency pair with important economic events from the U.S. throughout the week. Don’t miss out on this opportunity to make quick gains on the EUR/USD using Binary Options trading.
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1. American & Canadian Trade Balance: Published on Tuesday at 12:30 GMT. This double-feature event always shakes USD/CAD and the American figure, shakes all the majors. It’s expected to show a bigger deficit this time – over 38 billion dollars. USD/CAD parity continues to draw attention.
2. American CPI: Published on Wednesday at 12:30 GMT. Inflation is a key to raising interest rates and making the currency more attractive, but this probably won’t happen this time. CPI is expected to rise by 0.2% after remaining unchanged last time. Core CPI, which the Fed watches closely, is expected to rise by 0.1%, exactly like last month.
3. American Retail Sales: Published on Wednesday at 12:30 GMT, together with the CPI. Consumer behavior is felt strongly in retail sales. The hopes are high this time – Retail Sales are expected to rise by 1.1% after a small 0.3% rise last time, while Core Retail Sales are expected to be rise by 0.5% – more modest. Both releases mean very choppy trading.
4. Ben Bernanke talks: Begins testifying on Wednesday at 14:00 GMT. Bernanke arrives at the Joint Economic Committee and will lay out his economic outlook. Talking about the economy will definitely shake the dollar. Talks about interest rates will cause stronger moves and referring to the dollar will rock the markets, although this is highly unlikely.
5. American Unemployment Claims: Published on Thursday at 12:30 GMT. Last week saw a disappointment – a rise to 460K. This came after a steady improvement, week after week. This figure has proved to be the best indicator for the Non-Farm Payrolls. It’s expected to drop back to 439K this time.
6. American TIC Long-Term Purchases: Published on Thursday at 13:00 GMT. The flow of money into the US is a good gauge of confidence. After leaping above 120 billion three months ago, the figure rapidly squeezed afterwards, reaching 19.1 billion last time. The dollar needs another boost, over 20 billion, to rise.
7. American Philly Fed Manufacturing Index: Published on Thursday at 14:00 GMT. This important gauge of production has been on the rise in the past three months, ticking up to 18.9 points last time. It’s now predicted to take the next step and rise to 20.3 points.
8. European CPI: Published on Friday at 9:00 GMT. European prices are too stable for a rate hike in the foreseeable future. This is a burden on the Euro. CPI will probably be confirmed at an annual rise of 1.5% while Core CPI is expected to be revised from 0.8% to 0.9% – still quite low. The Euro still suffers from the Greek crisis.
9. American housing figures: Published on Friday at 12:30 GMT. Building Permits ticked up to 640K last month, slightly better than expected. So now, they’re predicted to slip back down to 630K. The complementary figure, Housing Starts, is expected to make a bigger move with a rise from 580K to 610K. If both figures surprise in the same direction, this will rock the markets.
10. American Consumer Sentiment: Published on Friday at 13:55 GMT. The University of Michigan publishes this important indicator close to the end of the day. After a few stable months, this figure is predicted to rise above 75 points, the highest since January 2008. Choppy trading is expected.
Disclaimer: Binary options trading might carry potential rewards, but also potential risks. You must be aware of the risks and willing to accept them in order to trade in the financial markets. Don’t trade with money you can’t afford to lose.
Euro Rises as ECB Takes Steps to Scale Back Emergency Measures
By Lukanyo Mnyanda and Anna Rascouet
Dec. 3 (Bloomberg) — The euro rose against the dollar and posted its biggest gain in a month versus the yen as European Central Bank President Jean-Claude Trichet announced the first steps toward scaling back emergency stimulus lending.
The euro climbed to near its strongest level in 16 months versus the dollar after Trichet told reporters in Frankfurt the need for such stimulus measures has diminished. It pared some of the gains after he said the recovery will be “uneven.” The yen slipped against higher-yielding currencies as the MSCI World Index of stocks gained for a fourth consecutive day.
“The fact is that stimulus is being withdrawn and growth is a little firmer than expectations,” said Jeremy Stretch, senior currency strategist at Rabobank International in London. “That’s keeping the euro well supported.”
