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Massive Liquidation In Binary Options Market

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Australian stocks are under significant pressure today following the bloodbath seen in the US and Europe. Markets clearly went into a risk off mode and investors exited their long positions. Rumors on the trading floor that a major hedge fund was liquidating positions spooked the markets. The selling pressure further intensified in the US after the Federal Reserve minutes were released and several members voiced concerns over monetary easing and if stimulus should be curtailed. The US dollar and the Japanese yen rallied against their peers and stocks and commodities got hammered.

ASX 200 Ends Down 118 Points; Binary Puts Rule The Day

The ASX 200 closed down 118.6 to 4980.10, closing under the key 5000 binary level. This is the largest drop for Australian shares since May of last year. Every major sector in the binary share market was lower, lead by weakness in the commodity producers. BHP Billiton closed down $1.48 to $37.17, Rio Tinto down $2.09 to $67.30 and Fortescue Metals lost 12 cents to $4.80.

Days like today are one of the easier ones for binary traders to trade. The trend for the day is clearly in tact and markets are being sold across the board. Weakness from one market spills over into another and you get a flood of selling pressure. Markets continue to make new lows hour by hour.

Aussie Dollar Continues Its Weakness

The Aussie dollar is lower for a second day as traders pare risk and sell assets. The Aussie dollar typically trades with global shares and moves according to global economic sentiment. Yesterday, the Aussie broke the key 1.0350 support level and that area is now significant resistance. The next major support level in the AUD/USD pair is the 1.02 level. The Aussie is currently trading at 1.02394 to the US dollar.

All Mighty US Dollar Roars In Binary Options Market

The US dollar index is trading at 3 month highs on the global risk off sentiment. The dollar is the world’s reserve currency and we are seeing a flight to safety as global markets panic. Assets such as gold, silver, oil and stocks are sold and that money is moved into the safety of the US dollar. Basically, people want their US dollars back and are raising cash.

British Pound The Weakest Currency In The Binary Options Market

The British pound is weak across the board and against all its major peers in the forex markets. The Bank of England minutes from the last meeting showed that several members want to expand asset purchases and possibly cut interest rates. The weakness in the pound looks set to continue and forex traders should continue with their short positions and binary traders continue to trade puts. Sterling is trading at 1.51813 to the US dollar and .87313 to the euro.

Gold Drops For 7th Day

I’ve been telling binary traders for quite some time now that gold’s bull run was looking tiresome. The last 2 days confirmed that thesis with gold breaking the critical $1600 level. Gold right now is just barely holding the $1550 level and the $1530 to $1550 area is very critical for gold. A break below and we could see further selling pressure in gold. Gold is currently at $1567.80 and silver at $28.52.

Economic Data Calendar

  • 0758 French Manufacturing PMI 43.8 forecast 42.9 prev (EUR)
  • 0758 French Services PMI 44.5 forecast 43.6 prev (EUR)
  • 0828 German Manufacturing PMI 50.5 forecast 49.8 prev (EUR)
  • 0828 German Services PMI 55.5 forecast 55.7 prev (EUR)
  • 0900 European Manufacturing PMI 48.4 forecast 47.9 prev (EUR)
  • 0900 European Services PMI 49.2 forecast 48.6 prev (EUR)
  • 0945 Spanish 10-Year Auction 5.290% prev (EUR)
  • 1100 British CBI Industrial Trends Orders -15 forecast -20 prev (GBP)
  • 1330 US Core CPI (MoM) 0.2% forecast 0.1% prev (USD)
  • 1330 US CPI (MoM) 0.1% forecast 0.0% prev (USD)
  • 1330 US Initial Jobless Claims 355K forecast 341K prev (USD)
  • 1330 US CPI (YoY) 1.6% forecast 1.7% prev (USD)
  • 1330 US Core CPI (YoY) 1.8% forecast 1.9% prev (USD)
  • 1400 US Manufacturing PMI 55.60 forecast 55.80 prev (USD)
  • 1500 US Existing Home Sales 4.90M forecast 4.94M prev (USD)
  • 1500 Philly Fed Manufacturing Index 1.0 forecast -5.8 prev (USD)
  • 1600 US Crude Oil Inventories 1.800M forecast 0.560M prev (Crude Oil)
  • 1600 US Gasoline Inventories -0.667M forecast -0.803M prev (Crude Oil)
  • 2230 RBA Governor Stevens Speaks

A lot of data on tap for binary and forex traders today. If any of the PMI figures come in weak, look for continued weakness in global markets. The Philly Fed Index and existing home sales will be closely watched in the US for signs of economic recovery. Good luck to all binary and forex traders today and follow the data and the trend!