Binary Options Weekly Review – March 15-19
The dollar retreated in the past week on most fronts. Was it a temporary move? The upcoming week provides lots of American events, with Ben Bernanke’s rate decision being the highlight. Here’s an outlook for this week’s market-moving events. In the forex industry, the proposed regulations by the CFTC are again in the news, as their decision is getting close. Also Introducing Brokers joined the fight against these proposals. We’ll probably hear more about it in the upcoming week.
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1. American TIC Long-Term Purchases: Published on Monday at 13:00 GMT. Treasury International Capital Long Term Purchases represent the difference between foreign investments in the US and US investments abroad, and actually shows foreign confidence in the US economy. The figure leaped to 126 billion two months ago, but was then cut to half. This time, it’s expected to stand at 38 billion.
2. German ZEW Economic Sentiment: Published on Tuesday at 10:00 GMT. This is a highly regarded survey that is a good indicator of the economy. It has fallen in the past months, hurting the Euro each time. A further drop from 45.1 to 43.3 points is expected this time.
3. Housing figures: Published on Tuesday at 12:30 GMT. The housing sector had a big “contribution” to the global crisis and is now showing a small recovery. Building Permits dropped to 620K last time, and are now expected to tick down to 619K. Also note a very related figure – Housing Starts, published at the same time. They’re expected to drop from 590K to 570K.
4. American rate decision: Published on Tuesday at 18:15 GMT. Ben Bernanke already made his move out of the usual cycle – the “mini rate hike” of the discount rate shocked the markets and signaled that the Federal Reserve will probably be more aggressive than other central banks. Will they finally drop the wording “an extended period of time” for the interest rate? As usual, the FOMC Statement will be in the limelight, as the Federal Funds Rate isn’t expected to move. Note that the statement can be very confusing.
5. Japanese rate decision: Published on Wednesday morning. Also in Japan, no change is expected in the rock bottomOvernight Call Rate, standing at 0.1%. The statement accompanying the decision will be carefully read, and the tone voiced at the press conference has the utmost importance for the Japanese yen.
6. British employment data: Published on Wednesday at 9:30 GMT. The number of unemployed Brits rose last month after two good months, as reflected in the Claimant Count Change. Another rise, of 8700 people, is expected this time. The unemployment rate, which relates to the previous month, is expected to follow the same line and rise from 7.8% to 7.9%.
7. American PPI: Published on Wednesday at 12:30 GMT. The first inflation figure of the week is about producer prices, and serves a warm up for the consumer prices. After a jump of 1.4% last month, a drop of 0.2% is predicted this time. Note that Core PPI is expected to edge up by 0.1%.
8. American CPI: Published on Thursday at 12:30 GMT. A rise in consumer prices is the key for future rate hikes. Last month the regular small changes: a rise of 0.2% in CPI and a drop of 0.1% in Core CPI. There aren’t any expectations this time – both indicators are expected to rise by 0.1%. This will be a very shaky time in the markets, as jobless claims are released at the same time.
9. American Unemployment Claims: Published on Thursday at 12:30 GMT. After jumping to almost 500K, jobless claims are slowly dropping, reaching 462K last week. Another drop to 456K is predicted now. A drop below 430K will boost the dollar. The rise in jobless claims was clearly reflected in the recent Non-Farm Payrolls.
10. American Philly Fed Manufacturing Index: Published on Thursday at 14:00 GMT. This important survey has been positive in the past 7 months, indicating improving economic conditions. After exceeding expectations and reaching 17.6, it’s predicted to soften to 17.3 points this time.
Best Regards,
StartOptions Team
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.
Forex Binary Options – How to use Binary Options to maximize your earnings during a false breakout
Forex options are becoming more and more popular nowadays among Forex traders as an additional tool for short-term speculations which are based on technical events. Although binaries are still young and suffer from liquidity and hence high premiums, Swing-Traders, Scalpers and Day Traders find the predetermined risk-reward ratio (~70% on trades that are “In the Money”, and 10% on trades that are “Out of the Money”,) extremely productive.
Illustration of a binary option at StartOptions.com:
We had the opportunity to discuss with StartOptions.com Head of Dealing J. Mavor:
Traders like to trade around market events or chart patterns. The stronger the event or the pattern, the more volume they will attract and improve the odds of breakout success. Quite often a false breakout can frustrate your expectations. This happens when not enough volume concentrates around the event, leading to a pullback before you had a chance to take profit. However pullbacks do not have to eat at your profits, if you trade the event with a Binary Option.
For example, on 17/02/2010 the FOMC Meeting Minutes failed to generate enough volume for the EURUSD to create a sustaining rally. As the image illustrates, eventually a pullback at 20:00 GMT to the event level at 19:00 GMT of 1.36167 would have left you with no gains and lost on the spread. Had you traded a Binary Option you would have made $70.
Here is how:
- At the time of the event you place a Put Binary Option trade on StartOptions.com. The cost of the trade is $100, returning $170 if the price ends below 1.36167 or $10 if the price ends above, It’s that simple.
- Since the price returned almost back to the breakout level, I made $170 on my Binary Option trade, whereas I would have made $0 and even paid for the spread had I traded the EURUSD directly.
So, basically what the Binary Option offers me is a way to profit on weak events, so I can target many more events. Otherwise we have to wait for GDP or other big news or patterns that generate sustaining breakouts
FX Binary Options Gameplan-USD-17/02/10
The USD was down against most major currencies yesterday as concerns over Euro-Zone debt problems waned and investors turned to riskier assets.
Wednesday in Asia, the dollar and the yen declined against their major opponents as a rally in most Asian stocks reduced demand for the lower-yielding currencies.
While the greenback fell to a 6-day low against the euro and Swiss franc, the yen slipped to near a 2-week low against its European major rivals.
Click here to trade USD Binary Options
The USD looked to extend its retreat on profit taking, for all the major USD currency pairs. Look for pullbacks on the USD retreat for all USD currency pairs as a great opportunity for buying Forex Put Binary Options
to earn a predetermined reward on the USD hourly binary options of %70, with StartOptions.com you can trade the USD against major currency pairs with hourly expirations, you need to speculate only on the direction of the underlying asset within an hour, let’s say you just bought a USD/EUR at 1.3751 that expire in an hour from now even if the price will be lower in one cent (1.3750) at expiry then you’ll be entitled for the the full reward of the Forex option (70% on average). in contrast to spot FX trading in which you must speculate much larger moves in order to profit from a trade.
Click on the picture below to enlarge the USD graphs:
FX Binary Options Gameplan-EUR/USD-16/02/10
On Monday the Euro fell further against the US dollar which was much ahead of the summit that was to be held to decide futures of what steps were to be taken regarding the debt situation in Greece.
The EUR/USD crossed both its weekly and daily descending resistance trendlines, clearly indicating upward momentum. Any pullback followed by strength would be a great opportunity for a Binary Options Call trade.
Binary Options Game Plan for the AUD/USD- 07/12/09
We had an interesting pattern for the swingers among us in the AUD/USD, the AUD is showing short term strength, crossing a former support level at 0.9105 and is advancing towards the wall- a descending channel in the 0.9118 area.
In such a case the following set-up shall take place.
1)AUD/USD fail to break the channel and flip followed by – Buy AUD/USD binary PUT option
2)AUD/USD break the descending channel- Buy AUD/USD binary CALL option
You can access Forex binary options using the following link:
http://www.startoptions.com
Disclaimer: StartOptions.com is not a financial advisor, and does not recommend the purchase of any stock or advise on the suitability of any trade or investment.
