The Weekly Top 5 Binary Options Trading Forecasts 03/24-28/2014
The Must Watch Top 5 Events of the Week
1. US Manufacturing PMI
03/24/2014 – Monday at 1:45 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 56.6 from the previous 57.1
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: The indicator is a survey of purchasing managers from the Manufacturing sector who are asked to rate the current business climate. A figure higher than 50 indicates industry expansion while below 50 indicates the contrarian. Keep in mind that Reuters subscribers receive the data 2 minutes earlier so price may start to move before the websites above publish the figure.
Directional bias: UP if the actual value is higher than 56.6
DOWN if the actual value is lower than 56.6
How I would trade this event: I would buy a 15 min Call on EUR/USD if the value will be lower than 55.
2. United Kingdom Consumer Price Index (year over year)
03/25/2014 – Tuesday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: 1.7% from the previous 1.9%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Bloomberg, Reuters, DailyFX
Why traders care and what to expect: CPI measures the change in prices paid by consumers for goods and services. It is considered UK’s most important measurement of inflation because it is used by the Bank of England when making decisions related to the Interest Rate; a CPI which exceeds certain levels may determine the BoE to adjust rates.
Directional bias: UP if the actual value is higher than 1.7%
DOWN if the actual value is lower than 1.7%
How I would trade this event: I would buy a one hour Put on GBP/USD if the value will be lower than 1.5%
3. US Durable Goods Orders
03/26/2014 – Wednesday at 12:30 pm GMT
What will it affect: USD, US stocks and indices
Forecast: 1.0% from the previous -1.0%
Where to keep an eye on the event: CommuniTraders, DailyFX, Bloomberg, Reuters, Forex Factory
Why traders care and what to expect: This indicator measures the change in the total value of purchase orders placed with manufacturers for goods that have a life expectancy of more than 3 years. An increased level of orders signifies optimism among consumers regarding economic conditions and also signals a potential increase in production activity.
Directional bias: UP the actual value is higher than 1.0%
DOWN if the actual value is lower than 1.0%
How I would trade this event: I would buy a four hour Put on EUR/USD if the value will be higher than 1.2%
4. United Kingdom Retail Sales (year over year)
03/27/2014 – Thursday at 09:30 am GMT
What will it affect: GBP, FTSE
Forecast: 2.9% from the previous 4.8%
Where to keep an eye on the event: CommuniTraders, Bloomberg, Reuters, Forex Factory, DailyFX
Why traders care and what to expect: Sales made at a retail level represent the major part of consumer spending which represents a hefty part of the economy. This indicator shows the change in the volume of sales made by retailers and it is considered a significant market mover. Keep an eye on the “month over month” indicator as well.
Directional bias: UP if the actual value is higher than 2.9%
DOWN if the actual value is lower than 2.9%
How I would trade this event: I would place a 15 min Call on GBP/JPY if the value will be higher than 3.0%
5. German Consumer Price Index
03/28/2014 – Friday at 1:00 pm GMT
What will it affect: EUR, DAX
Forecast: 1.1% from the previous 1.2%
Where to keep an eye on the event: CommuniTraders, Forex Factory, Daily FX, Bloomberg, Reuters
Why traders care and what to expect: The indicator basically measures German inflation and since the German economy is the backbone of the Euro Zone economy, the ECB closely monitors levels of inflation in this country. The goal of the ECB is to maintain price stability so they will adjust the Interest Rate to keep inflation within certain thresholds.
Directional bias: UP if the value is higher than 1.1%
DOWN if the value is lower than 1.1%
How I would trade this event: I would buy an hourly Call on DAX if the value surpasses the forecast.
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Note: The times, dates and values can change during the week. Also, different sources sometimes show different values. Keep an eye on the mentioned financial websites for any modifications.