Weekly Top 5 Binary Options Trading Market Moves – 2/4-8/2013
The Must Watch Top 5 Events of the Week
1. Spanish Unemployment
02/04/2013 – Monday at 08:00 am GMT
What will it affect: EURO
Forecast: 150K from a previous of -59.1K
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: The Spanisheconomy is an important part of the Euro zone economy and instability in Spain can have a negative effect on the Euro. The number reflects the change in unemployment compared to the previous month, not the entire unemployed work force. Although it’s not always a high impact economic indicator, the huge expected change will probably bring volatility.
Directional bias: UP on EURO if the value will be lower than 150K
DOWN on EURO if the value will be higher than 150K
How I would trade this event: I would buy a Call on EUR/USD if the actual number will be lower than 75K
2. Euro Minimum Bid Rate
02/07/2013 – Thursday at 12:45 pm GMT
What will it affect: EURO
Forecast for the interest rate: Unchanged from 0.75%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: The interest rate is probably the most important economic indicator and traders watch all other indicators in an attempt to find hints about future rate decisions. Especially because no change is expected, a surprising decision would bring a lot of hectic movement.
Directional bias: UP if the rate will increase
DOWN if the rate will decrease
How I would trade this event: I would buy 15 minute Calls until one of them will expires OTM, if the rate will increase.
3. ECB Press Conference
02/07/2013 – Thursday at 1:30 pm GMT
What will it affect: EURO
Forecast: No forecast is made for this type of event
Where to keep an eye on the event: the ECB official website
Why traders care and what to expect: The Press Conference usually overshadows the Rate decision and tends to have a higher impact. Mario Draghi’s speech will probably be the main market mover for this week and the Euro can strengthen if his remarks and attitude will be hawkish or pointing towards economy expansion. The opposite is true for a dovish attitude.
Directional bias: UP if the ECB President is hawkish
DOWN if the ECB President is dovish
How I would trade this event: I would trade once a clear direction is established, not before.
4. British Pound Official Bank Rate
02/07/2013 – Thursday at 12:00 pm GMT
What will it affect: GBP
Forecast: Unchanged from 0.50%
Where to keep an eye on the event: Forex Factory, DailyFX, Bloomberg, Reuters
Why traders care and what to expect: Interest rates are crucial for currency valuation and usually if the rate changes, the Monetary Policy Committee will release a statement detailing the economic and monetary reasons that lead to the change. It also presents an economic outlook and possibly clues about future rates.
Directional bias: UP if the rate is increased
DOWN if the if the rate is decreased
How I would trade this event: I would buy 15 minute Puts if the rate is decreased.
5. Coca – Cola Enterprises, Inc. Earnings Report
02/07/2013 – Thursday at 3:00 pm GMT
What will it affect: CCE
Consensus EPS forecast: 0.43
Where to keep an eye on the event: NASDAQ, Bloomberg, Reuters
Why traders care and what to expect: Last year’s actual EPS was 0.36 for the same period so an increase is already expected but even higher values than 0.43 could take CCE higher. At the moment the analysts’ recommendation is biased towards the upside.
Directional bias: UP if the EPS is higher than 0.43
DOWN if the EPS is lower than 0.43
How I would trade this event: I would buy an hourly Call on Coca Cola if the number will be higher than 0.50.
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Keep Tracking of the Upcoming Binary options events and discuss their Outcome with Bogdan and Friends on our Forum!
***Note: The exact time for the release of the Earnings reports is not announced at the moment. It is possible that the date will be updated as well. Keep an eye on the mentioned financial websites for the actual release.