Binary Options Market Outlook – September 13 – 17
Economic reports in the coming days will include figures on retail sales for August, and gauge of manufacturing activity in the New York region during September. The latter part of the week brings the government’s count of initial claims for unemployment benefits, with the most recent count falling, including the four-week average.
Stocks
U.S. Stocks were up about 1% for the week. Up 1% for the week, the Dow Jones Industrial Average added 47.53 points, or 0.5%, to end at 10,462.77, with the blue-chip index ending back in the black for the year for the first time in the holiday-shortened week. The S&P 500 Index added 5.37 points, or 0.5%, to 1,109.55, leaving it up 0.5% for the week, while the Nasdaq Composite added 6.28 points, or 0.3%, to 2,242.48, a rise of 0.4% from the week-ago close.
The U.S. stock market’s past two-week advance could continue in coming weeks, depending on economic reports about the state of the recovery.
Currencies
This week, the dollar index has lost 0.5%. Versus the yen, the U.S. dollar is down 0.2%. The dollar has risen 0.2% against the Swiss franc this week, while the euro has advanced 1.1%. The euro has dropped 1.4% against the dollar and 1.6% versus the yen since last Friday. The British pound has declined 0.6% this week against the U.S. dollar.
Commodities
Gold failed to surpass its all-time high close this week, with traders liquidating positions. On Sept. 7, gold prices settled at $1,259.30, the highest closing price on record. Silver for December delivery closed down 1 cent, or 0.1%, at $19.845 an ounce, down 0.5% for the week. Copper fell 4 cents, or 1.1%, to $3.41 a pound. It’s fallen 2.7% this week. Palladium for December delivery fell $1.96, or 0.4%, to $519.85 an ounce on Friday. Platinum slid $10.80, or 0.7%, to $1542.5 an ounce.
Binary Options Market Outlook – September 6 – 10
Stocks:
This coming week investors will likely focus on consumer credit and jobs in the holiday-shortened week ahead. Some economists say the numbers are an indicator of the future behavior of the stock market on the grounds that an expansion of credit translates into growing corporate sales, earnings and stock price. Analysts are currently looking for consumer credit to decline by $2.5 billion in July after falling $1.3 billion in June.
Better-than expected unemployment figures Friday helped boost the Dow and other indexes to their first weekly gain since early August. For the week, the Dow Jones Industrial Average closed up 2.9% at 10,488; the S&P 500 rose 3.7% for the week to 1104; and the Nasdaq Composite Index ended at 2234, up 3.7% for the week. U.S. markets will be closed on Monday for the Labor Day holiday.
Currencies:
The U.S. dollar pared gains against the Japanese yen and extended losses against the euro Friday, with stronger levels for the greenback reduced after a report of slowing in the U.S. services sector last month. The dollar had gained ground against the yen earlier in the session after better-than-expected monthly jobs data from the U.S. Labor Department. But the dollar’s advance was softened after the Institute for Supply Management said its U.S. services-sector index hit 51.5% in August, down from 54.3% in July.
Commodities:
Gold futures pared some of its losses as the session progressed, and notched gains of 1% on the week. That’s gold’s fifth consecutive weekly gain. Gold for December delivery lost $2.30, or 0.2%, to $1,251.10 an ounce on the Comex division of the New York Mercantile Exchange.
On the week, silver soared 4.8%. That follows gains of nearly 6% the week before. Silver on Friday settled at its highest price since March 2008, and gold futures came off their two-month high, posting losses as a drop in U.S. payrolls didn’t turn out as steep as forecast and thus reduced demand for the precious metal as an investment safe haven.
Binary Options Market Outlook – August 30 – September 3
This week’s major economic reports include consumer-spending on Monday, ISM data on Wednesday and the Non-Farm Payroll report on Friday. The ISM (Institute for Supply Management) survey of manufacturers is expected to fall slightly to 53.5% from 55.5%.
Affecting the Australian (AUD) dollar on Monday are Building approvals (month over month) and retail sales (month over month) to be issued 9:30pm US EST.
On Tuesday the Canadian (CAD) month over month GDP figures will be released before the market opens.
Wednesday will see the British pound (GBP) affected by the UK manufacturing report and homes report issued by Halifax Bank of Scotland.
Thursday keep an eye out for the ECB press conference, surely to affect the EUR/USD pair.
The major news for the week will naturally be focused on Friday’s Non-farm Payroll Report (NFP), which has produced disappointing results over the last two months. Investors will continue to focus on meager job growth in the US, with a jobless rate ticking up to to 9.6% from 9.5%, following the layoff of temporary Census Workers. That number would also look far worse if it included the people who are too discouraged to look for work.
Job concerns to weigh on the markets
Lets look at how this will affect the major markets:
Stocks:
Last week stocks shot higher as investors searching for confidence were reassured by Federal Reserve Chairman Ben Bernanke’s vow to do whatever it takes to revive the shaky economy. Let’s see if that momentum continues this week.
Following his speech The Dow Jones Industrial Average vaulted 125 points, or 1.3%, to 10111 during early afternoon trading.
Currencies:
Japan’s yen erased its early losses against major rivals Monday, after an emergency easing by the Bank of Japan failed to stem the currency’s strength for long.
The dollar slipped to ¥84.94 from ¥85.39 yen in late North American trading on Friday, after rising as high as ¥85.88 after the special meeting was announced. The yen hit a 15-year high versus the dollar last week.
The euro also slipped against the yen, buying ¥108.06, down from ¥108.75 late Friday and from a Monday high of ¥109.55.
Commodities:
Crude futures were little changed in Asia Monday, supported by a weak dollar, but lacking any upward momentum from supply-demand fundamentals.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $75.11 a barrel at 0655 GMT, down 6 cents in the Globex electronic session. October Brent crude on London’s ICE Futures exchange fell 10 cents to $76.55 a barrel.
Oil has bounced back from a trough of $70.76/barrel reached Aug. 25 as investors renew their appetite for risk and sell the greenback. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was down 0.02 at 82.74.
Binary Options Daily Review August 24, 2010
Stocks:
U.S. stocks finished in the red for a third straight day as salient economic concerns weighed on the market, overshadowing excitement over a slew of recent acquisitions.
The Dow Jones Industrial Average finished down 39.21 points, or 0.4%, at 10,174.41, after gaining as much as 91 points in intraday trading. The Nasdaq Composite Index slipped 0.92% to 2,159.63 while the Standard & Poor’s 500-stock index fell 0.4% to 1067.36.
Economists are expecting the US government’s estimate of 2.4% economic growth for the second quarter to be cut to 1.2% when it is released Friday, which would represent a clear slowdown from earlier in the year.
Currencies:
While remaining in range to break lower, the USD/JPY has most recently halted its slide at 85.00 where it commenced to pull back slightly. So far, the pair is trading back up around 85.10 where it seems to be finding modest resistance to climb any higher.
After opening the week facing a 35-pip downside gap, AUD/NZD managed to regain over 70 pips on Monday. The Aussie was able to fill the opening gap and reached an intraday high at 1.2643 against the Kiwi during the European session.
However the AUD/NZD retreated somewhat and closed around 1.2600 in the last hours of trading Monday and continues to move horizontally into a tight range between 1.2574 and 1.2615 during the current Asian session.
Commodities:
Gold retreated for a third day as an advance in the dollar curbed demand for commodities, including precious metals.
Gold for immediate delivery declined 0.5 percent to $1,220.55 an ounce at 10:46 a.m. in Singapore. December-delivery futures fell 0.5 percent to $1,222.20 an ounce.
While gold is up 11% in trading this year the precious metal is expected to pare any further gains as demand for stocks, commodities and energy thin.
Binary Options Market Outlook – August 23 – 27
Will the US market continue to see red? Corporate activity looks to pick up the slack in growth.
Let’s see how the US markets react to continued uncertainty and last week’s bearish sentiment. U.S. stocks declined Friday on light summer trading volumes, sending the Dow Jones Industrial Average to its second consecutive week of losses as concerns about economic growth weighed on investor sentiment. Offsetting concerns about the sagging recovery in the job market is a resurgence in M&A activity – as corporations in a stronger position to make strategic acquisitions are starting to move again.
Major economic reports to keep an eye on include Tuesday’s Canada core retail sales report (m/m), Wednesday’s Germany Ifo Business Climate and US new home sales, Thursday’s UK Nationwide Building Society’s home sale prices and US unemployment claims, toppping off with Friday’s UK revised GDP and comments by US Fed Reserve Ben Bernanke.
Lets look at how this will affect the major markets:
Stocks:
Leading the Dow’s decline Friday, Hewlett-Packard Co. dropped 2.2%. The technology giant’s profit climbed 6.1% on higher world-wide sales in its fiscal third-quarter, its final quarter with Mark Hurd at its helm. But investors have been nervous about H-P since Hurd left the company two weeks ago. Looks like things might be brighter on the other side of the pond — European stocks were trading up in early action on Monday, led by the financial and mining sectors, with SABMiller and HSBC Holdings in focus following deal talk. Keep an eye on European heavyweights with exposure to Asian markets. Overnight, Asian shares traded mostly higher while Australian stocks were steady.
Currencies:
The Australian dollar gained back most of its losses against its U.S. counterpart Monday, after falling in the wake of Saturday’s indecisive weekend election. The Aussie was buying 89.10 U.S cents, down 0.2%, after Saturday’s general election led to what will likely be the first hung parliament there in 70 years.
The Euro has dropped about 40 pips lower following weaker than expected German advanced Manufacturing PMI figures breaking through Asian sessions trading range floor, at 1.2680, to reach a fresh session low at 1.2680.
Commodities:
Despite opening the week under $74.00 a barrel, the front-month crude contract has recovered slightly over Asia on a weakening US dollar. So far the contract for October delivery trades at $74.19, yet remains fragile near 6-week lows due to last week’s disappointing US data releases.
The biggest factor weighing heavily on crude oil as of recent has been the sluggish economic recovery in key economies with typically high energy demand. In the US, the world’s leading energy consumer, job growth is much slower than analysts’ were predicting with initial jobless claims jumping to a 9-month high in 500,000 this past Thursday. Larger than expected crude inventories is also a contributing factor as stockpiles unexpectedly rose last week.
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.
Binary Options Market Outlook – August 9 – 13
Disappointing U.S. jobless figures will put pressure on the Fed to decide on further ‘quantitative easing’ for the economy in the coming week.
Lets look at how this will affect the majors:
Currencies:
The EUR/USD currency pair crossed a major resistance area at $1.32 on Friday and higher prices are now possible this week. Look for trading opportunities as the EUR/USD makes new highs.
Stocks:
The S&P500 broke back below 1,118 on Friday and this week we can expect the S&P500 to consolidate above 1,100. Look for trading opportunities within this range. Be aware that a break below 1,100 would possibly lead to much lower prices.
The FTSE (London) is in a tight consolidation range between 5,300 and 5,400. Look for trading opportunities within this range. Be aware that a break below 5,300 would possibly lead to lower prices and above 5,400 would lead to higher prices.
Commodities:
Oil broke below support of $81.50 and is holding above $80.00 support. This week expect consolidation in this range.
Binary Options Market Outlook – August 2 – 6
USDJPY is building up a strong support line at 86.50
Currencies: As we forecasted here last week, the USDJPY was building up a strong support line at 86.50. On Friday this support was broken and lower prices are now prices. Many of our traders have been writing to us thanking us for these forecasts, so due to popular demand we will be posting many new forecasts every day on our “Binary Options Gameplan” daily and “Binary Options Market Outlook” weekly.
Commodities: Gold futures are close to breaking strong resistance of the descending trendline, now at 1,181.70.
One this resistance is broken, higher prices will be possible.
U.S. Stocks: Yahoo! is building a tight descending channel which once broken, will move this stock.
London Stocks: Tesco (London Stock Exchange) broke through an ascending support line and now lower prices are possible.
