Binary Options Setup: UK Claimant Count Change

BinaryOptionsNow | Published on July 12, 2011 at 2:33 pm

AnyOption review

As the financial markets continue to be impacted by the ongoing EU sovereign debt crisis that now threatens to envelop Italy as well, there may be prime opportunities to invest in forex binary options in order to take advantage of the short-term market volatility that exists.

Here is an example of a forex binary options investment that could potentially yield a positive return for tomorrow, July 13th:

The GBP/USD currency pair will most likely be impacted by the release of the UK Claimant Count change tomorrow, July 13th at 9:30 GMT. An investment in a put or call GBP/USD forex binary option could potentially take advantage of the short-term increase or decrease in value of the GBP vis-a-vis the USD following the release of the UK Claimant Count Change.

The UK Claimant Count Change measures the change in the amount of unemployed people in the UK during the previous month. An increasing amount of unemployed individuals indicates a weakness in the labor market in an economy and has a negative effect on consumer spending and, as a result, economic growth as a whole.

The previous UK Claimant Count Change was released on June 15th and listed 19.6K – much higher than the forecast of 6.5K – as the change in the amount of people out of work in the UK.

As you can see from the graph below, traders that anticipated that the claimant count change would be much higher than expected and invested in a put GBP/USD forex binary option would have had their options finish in-the-money. As clearly indicated, immediately following the release of the claimant count change, the GBP began decreasing in value vis-a-vis the Dollar. Thus, a put GBP/USD binary option at 9:30 GMT with a one hour expiry would have finished in-the-money.

GBP/USD binary option

 Click on graph to expand

Most analysts predict the UK Claimant Count Change for July 13th will be around 15K. A number higher than 15K could be a negative sign for the British Pound indicating that the economy is shedding more jobs that forecast. In that case, it may be profitable to invest in a put GBP/USD forex binary option in order to profit from a decrease in the value of the GBP against the greenback.

A lower number should be taken as a positive sign vis-a-vis the GBP showing that the British economy is growing. In that case, a call GBP/USD forex binary option might yield a profit by seizing up on the strength of the GBP vis-a-vis the Dollar.

Remember, the financial markets are constantly being influenced by myriad factors so there is no guarantee that British Pound will only respond to the data from the claimant count change when they are released.

However, judging from past claimant count change releases such as the one above, there may be an excellent opportunity to profit with binary options during the release of this very sensitive economic data.

For more news and updates, follow us on Twitter @binaryoptionsnow !

GD Star Rating
loading...
GD Star Rating
loading...
Binary Options Setup: UK Claimant Count Change, 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