Financial News

Binary Options Weekly Outlook May 6-May 10

U.S. Stocks Cap Weekly Surge!

U.S. stocks were able to surge during last week’s trading session. The gains were topped of on Friday, as traders realized just what high returns could be made. A better-than-forecast April jobs report increased the confidence for the Dow Jones and S&P 500. On Friday alone, the Dow surged 0.96%, the S&P 500 jumped 1.05% and the Nasdaq Composite Index climbed 1.14%. With the unemployment rate in America siding to 7.5% from 7.6%, it was no wonder we saw so much bullish sentiment in the leading stocks and indices.

The crude oil binary option advanced last week, even though there were days when the black gold slumped. It rose on Friday alone by over $1, because traders were encouraged by the strong U.S. data and weak U.S. dollar. These 2 factors were enough to encourage investors to buy into the crude oil binary option. Traders are hoping for more bullishness once trading commences on Monday morning.

There was much volatility in the forex market last week. The biggest gainer was the pound, as traders gained confidence after the nation released positive manufacturing and housing data. Among the weakest currencies was the yen due to the lack of safe-haven demand as the trading week dragged on. The euro may make big gains in the coming trading days.

This week’s main events – Monday May 6 – Friday May 10:
Monday May 6:
  • 10:00 GMT USD  Retail Sales m/m – Change in the total value of inflation-adjusted sales at the retail level. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Tuesday May 7:
  • 02:30 GMT AUD  Trade Balance – Difference in value between imported and exported goods and services during the reported month. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation’s exports. Export demand also impacts production and prices at domestic manufacturers.
  • 08:00 GMT CHF  Foreign Currency Reserves –Total value of foreign currency reserves held by the SNB. It provides insight into the SNB’s currency market operations.
Wednesday May 8:
  • 11:00 GMT EUR  German Industrial Production m/m – Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
  • 13:15 GMT CAD  Housing Starts – Annualized number of new residential buildings that began construction during the previous month. It’s a leading indicator of economic health.
  • 15:30 GMT USD  Crude Oil Inventories – Change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
  • 23:45 GMT NZD  Unemployment Rate – Percentage of total work force that is unemployed and actively seeking employment during the previous quarter.
Thursday May 9:
  • 09:30 GMT GBP  Manufacturing Production m/m – Change in the total inflation-adjusted value of output produced by manufacturers. It’s a leading indicator of economic health – production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
  • 13:30 GMT CAD  NHPI m/m – Change in the selling price of new homes. It’s a leading indicator of the housing industry’s health.
  • 13:30 GMT USD  Unemployment Claims – The number of individuals who filed for unemployment insurance for the first time during the past week.
Friday May 10:
  • 00:50 GMT JPY  Current Account – Difference in value between imported and exported goods, services, income flows, and unilateral transfers during the reported month.
  • 02:30 GMT AUD  Monetary Policy Statement  – It provides valuable insight into the bank’s view of economic conditions and inflation – the key factors that will shape the future of monetary policy and influence their interest rate decisions.

Binary Options Weekly Outlook January 28-February 2

Oil Soars Last Week on Global Economic Recovery

The price of crude oil climbed steadily last week, as one country after another released data showing an improvement in their economies. This pointed to an upturn in the global economy. A direct result was the higher demand for crude, which helped increase oil prices for yet another trading week. It should not be forgotten that oil was also helped by the fall in U.S. supplies last week.  Oil ended Friday’s session higher by 7 cents at $96.03.

U.S. equities recorded the longest stretch of gains since 2004 last week due to the positive corporate earnings for the top U.S. companies and on a suspension to the Federal debt limit. The Dow Jones Industrial Average surged 246.28 points, or 1.8%, to 13,895.98. The S&P 500 climbed 1.1 percent to 1,502.96. IBM jumped 5.4% to $204.97. Google Inc. rose 7% to $753.67. Apple dipped 12% to $439.88.

The yen sank for an 11th straight trading week against the dollar on the forecast that the Bank of Japan will go ahead with further measures to push the JPY even lower.  The USD/JPY pair advanced 0.9% to 90.91 yen last week. It touched 91.19 yen, the highest level since June 2010. The EUR/JPY cross added 2% to 122.32 euros last week.

This week’s main events – Monday January 28 – Friday February 2:
Monday January 28:
  • 09:00 GMT EUR  M3 Money Supply m/m – Change in the total quantity of domestic currency in circulation and deposited in banks. Early in the economic cycle an increasing supply of money leads to additional spending and investment.
Tuesday January 29:
  • 15:00 GMT USD  CB Consumer Confidence –Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
  • 23:50 GMT JPY  Retail Sales y/y –It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Wednesday January 30:
  • 09:30 GMT GBP  Net Lending to Individuals m/m – Change in the total value of new credit issued to consumers. It’s correlated with consumer spending and confidence.
  • 13:15 GMT USD  ADP Non-Farm Employment Change – Estimated change in the number of employed people during the previous month, excluding the farming industry and government.
  • 13:30 GMT USD  Advance GDP q/q – Annualized change in the inflation-adjusted value of all goods and services produced by the economy. It’s the broadest measure of economic activity.
  • 15:30 GMT USD  Crude Oil Inventories – Change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
Thursday January 1:
  • 07:00 GMT GBP  Nationwide HPI m/m – Change in the selling price of homes with mortgages backed by Nationwide.
  • 13:30 GMT USD  Unemployment Claims – The number of individuals who filed for unemployment insurance for the first time during the past week. Consumer spending is highly correlated with labor-market conditions.
  • 23:30 GMT JPY  Household Spending y/y – Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy.
Friday February 2:
  • 09:30 GMT GBP  Manufacturing PMI – Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry. Businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
  • 15:30 GMT USD  Average Hourly Earnings m/m  – Change in the price businesses pay for labor, excluding the farming industry. When businesses pay more for labor the higher costs are usually passed on to the consumer.

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