Weekly Binary Options Setups (May 16th – 20th)

BinaryOptionsNow | Published on May 16, 2011 at 4:39 pm

AnyOption review

NEW YORK (Binary Options Now) – The U.S. Dollar was firm again last week against all the other major currencies, except for the Japanese Yen against which it fell marginally as the Japanese currency benefitted from risk averse asset flows.

Although the Euro was hurt by a downgrade of Greece’s debt by the S&P rating agency and Sterling weakened on the BOE Inflation Report, the continued overall corrective rise in the Greenback was again attributed to an ongoing slide in commodity prices. This tended to hurt the commodity currencies like the AUD and CAD in particular.

Nevertheless, the economic numbers released last week for the United States were mostly mixed, with worse than anticipated Trade Balance and Retail Sales numbers, but higher than forecast PPI inflation data and a narrower than expected Federal Budget Balance.

Binary Option Setups for Upcoming Major Market Events

Several key fundamental economic data releases, which will be reported in the binary options news later this week, will probably give traders interested in forex binary options trading considerable opportunities for profitable transactions.

These economic releases that may well affect the forex market considerably and include the following events listed in approximate chronological order:

1. Eurozone and German ZEW Economic Sentiment Survey

The Zentrum fur Europaische Wirtschaftsforschung or ZEW will release the diffusion index resulting from its monthly Economic Sentiment Survey on Tuesday. The index for the German ZEW survey is expect to decline from 7.6 to 4.8 this month, while the Eurozone ZEW survey is also expect to fall from 19.7 to 17.9.

A worse than expected result for this closely watched economic sentiment survey can hurt the Euro, so a forex binary options strategy of buying a put on the EUR against another major currency like the USD could be a way to profit if one or more of these Sentiment surveys comes out considerably below the market’s expectations.

2. RBA, FOMC and MPC Meeting Minutes

The Reserve Bank of Australia is scheduled to release the Meeting Minutes from its last Cash Rate Decision on Tuesday. Traders watch these minutes closely to review the RBA policymakers’ most recent thinking on interest rates and the Australian economic climate.

Furthermore, the Bank of England will release the important Meeting Minutes from the MPC’s last monetary policy meeting on Wednesday. The minutes will reflect the vote on interest rates that is expected to be 3-0-6, as well as the committee’s vote on the asset purchase facility. Both rates and the asset purchase facility were left unchanged.

Later the same day, the Federal Reserve Bank will release its latest FOMC Meeting Minutes. The minutes offer traders detailed insights into the economic and financial circumstances that affected the FOMC’s last vote to leave rates unchanged.

More hawkish than expected comments any of these monetary policy minutes will tend to strengthen the respective currencies, so buying a binary AUD, GBP or USD call against another major currency can be a profitable forex binary options strategy if the minutes indicate higher rates may be forthcoming.

3. UK Employment Report

The UK Office of National Statistics will release its latest Employment Report this coming Wednesday. The closely watched labor report is expected to show 0.7K for the key Claimant Count Change versus last month’s 0.7K result and a tick upward to 7.9% for the UK Unemployment Rate compared with the 7.8% seen previously. In addition, the Average Earnings Index is expected to stay steady at 2.0%.

Variations in this key labor sector number can significantly affect forex rates that involve the Pound Sterling, so a forex binary options strategy of buying a binary GBP call option versus another major currency like the USD might be profitable if the UK employment data results are better than the market’s consensus.

4. UK and Canadian Retail Sales

The UK Office of National Statistics will release its closely watched Retail Sales data on Thursday that reflects the change in the total value of inflation adjusted sales at the retail level. UK Retail Sales is currently expected to come out at the 1.0% level, versus the 0.2% level seen the previous month.

On Friday, Statistics Canada will also put out Retail Sales data for Canada that is expected to improve by 0.9% versus last month’s 0.4% gain. Furthermore, the market is expecting the more significant Core Retail Sales number that excludes autos to gain by 0.8% compared with its previous 0.7% rise.

Due to the volatility that the release of this key indicator can cause for the respective currencies, a forex binary options strategy of buying a strangle or straddle on the GBP or CAD versus one of the other major currencies like the USD could be a limited risk way to profit if the UK or Canadian Retail Sales data results in a significant move in the underlying currency pair.

5. BOJ Rate Decision, Press Conference and Statement Tentatively Scheduled

The Bank of Japan is tentatively scheduled to release its next Rate Decision on Friday in its accompanying Monetary Policy Statement. In addition, the BOJ Governor Masakki Shirakawa will hold a Press Conference in Tokyo to discuss the Overnight Call Rate Decision, which is expected to leave rates unchanged at <0.10%.

A rate rise in the Decision or more hawkish than expected comments in the Statement or Conference will tend to strengthen the Japanese Yen, so buying a binary USD put/JPY call option can be a profitable forex binary options strategy if the anticipated BOJ Rate Decision indicates higher rates may be forthcoming in Japan.

GD Star Rating
loading...
GD Star Rating
loading...
Weekly Binary Options Setups (May 16th – 20th), 5.0 out of 5 based on 1 rating

Comments

Subscribe

Sign up for our Newsletter
IQoption banner
24option banner

Top Binary Options Brokers

91% Returns
in case of correct prediction
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK
3 Types of Options
Free $500 Demo Account
15% Protected Returns
Most Advanced Trading Platform
88% Returns
Free 100% Trading Bonus
89% Returns
Free 100% Trading Bonus
24option banner

Binary Options Video