Binary Option Setups: Week of August 15th – 19th

BinaryOptionsNow | Published on August 15, 2011 at 3:01 pm

AnyOption review

Since the US Debt Rating Downgrade, markets have been more volatile than ever. From the potential downgrade of new countries to the impressive rise of both the Yen and the Swissy, the current economic turbulence provides excellent opportunities to profit from Binary Options that take advantage of short-term volatility in the major Forex pairs including the US dollar, the GBP and the Canadian dollar.

Potential Binary Option Setups

Here is a list of economic events that may provide the right conditions for a Forex Binary Option investment to finish in-the-money this week:

1. German GDP (Quarterly) – Tuesday, August 16th 6:00 A.M. GMT – The Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator for the economy’s health. It is provided by the Statistisches Bundesamt Deutschland. The quarterly percent changes in GDP shows the growth rate of the economy as a whole.  A higher than expected reading should be taken as positive for the German economy, while a lower than expected reading should be taken as negative for the country.

The previous German GDP released on May 24th came out with a percentage change of 1.5% exactly as forecasted by analysts. The forecast for Tuesday is 0.5%.

If the general sentiment is that the quarterly percent changes in German GDP will come out far below the prediction of 0.5%, it may be prudent to invest in a CALL on an EUR/USD binary option with the idea that euro will decline in value vis-a-vis the dollar.

If, on the other hand, there is grounds for optimism and the feeling is that the German GDP reading will be much higher than 0.5%, indicating a positive outlook for the German economy, it may be prudent to invest in a PUT on an EUR/USD binary option with the expectation that the euro will increase in value against the US currency.

 

2. UK Claimant Count Change (Monthly) – Wednesday, August 17th, 8:30 A.M. GMT – The UK Claimant Count Change measures the change in the number of unemployed people in the UK during the given month. It is released by the Office for National Statistics. These figures will be very interesting given the recent riots that took place in England last week. Will this unprecedented event have an impact on Job data? We will know that on Wednesday.

A higher than expected reading should be taken as bearish for the GBP, while a lower than expected reading should be taken as bullish for the Pound.

The previous figure released on July 13th was 24.5K which was quite negative since the previous forecast was for 15K. The forecast this month is 20K.

An opportunity to profit from an GDP/USD forex binary option may present itself if UK Claimant Count Change is much higher or lower than the predicted outcome.

Should the reading be higher than expected, this could indicate that expectations for the GBP Job market are negative and the Pound may in turn be buoyed by these expectations and decrease in value against the EU’s single currency. In this case, an investment in a CALL GBP/EUR binary option at or around the release of the employment figures may finish in-the-money.

If, on the other hand, the UK Claimant Count Change figures come out way below expectation, the GBP may be positively impacted by this data and gain ground against foreign currencies. In that case, a PUT on an GBP/USD binary option investment made at or around the release of the data may finish in-the-money.

 

3. UK Retail Sales (Monthly) – Thursday, August 18th 9:30 A.M. GMT – The retail sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in the UK compiled by the Office for National Statistics.

The previous figure released on July 21th was 0.7% which was quite positive since the previous forecast was for 0.6%. The forecast this month is for a slight increase of 0.3%.

An opportunity to profit from a GBP/USD forex binary option may present itself if the UK retails sales reading is much higher or lower than the predicted outcome. Should the reading be higher than expected this could indicate that expectations for the UK economy are positive and the pound may in turn be buoyed by these expectations and increase in value against the US dollar. In this case, an investment in a put GBP/USD binary option at or around the release of the retails sales data may finish in-the-money.

If, on the other hand, the retail sales reading comes out way below expectation, the pound may be negatively impacted by this data and sink in value against its US counterpart. In that case, a call GBP/USD binary option investment made at or around the the release of the data may finish in-the-money.
4. US Consumer Price Index (CPI) (Monthly) – Thursday, August 18th 13:30 GMT – The US Consumer Price Index measures the changes in the price of goods and services. Indeed, it measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation in the US.

A higher than expected reading should be taken as bullish for the USD, while a lower than expected reading should be taken as bearish for the USD.

The previous figure released on July 15th was -0.2% which was quite negative since the previous forecast was for -0.1%. The forecast this month is 0.2%.

An opportunity to profit from a EUR/USD Forex binary option may present itself if the US Consumer Price Index is much higher or lower than the predicted outcome.

Should the reading be higher than expected, this could indicate that expectations for the USD are positive and the dollar may in turn be buoyed by these expectations and increase in value against the EU’s single currency. In this case, an investment in a put on a EUR/USD binary option at or around the release of the employment figures may finish in-the-money.

If, on the other hand, the US Consumer Price Index figures come out way below expectation, the USD may be negatively impacted by this data and lose ground against its EU counterpart. In that case, a CALL on a EUR/USD binary option investment made at or around the release of the data may finish in-the-money.

 

5. Canadian Consumer Price Index (CPI) (Monthly) – Friday, August 19th 12:00 GMT – The Canadian Consumer Price Index is released by Statistics Canada. If the previous figure released on July 22th was -0.6% which was quite negative since the previous forecast was for 0.1%. The forecast this month is 0.2%.

This release, -as for the US CPI release on Thursday-, could be a serious opportunity to profit from a USD/CAD Forex binary option if it is higher or lower than the predicted outcome of 0.2%.

 

For more binary options news and information, follow us on Twitter!

 

As always, keep in mind that the major forex pairs are constantly being influenced by many other factors beyond the release of economic data and that previous results do not guarantee future outcomes.

GD Star Rating
loading...
GD Star Rating
loading...
Binary Option Setups: Week of August 15th – 19th, 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