Australia City

Forex And Binary Options Pausing After A Wild Week

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Forex and binary options are quiet this Friday after a wild and crazy week. Markets had a lot of data to digest and it was a volatile week for forex and binary options. Japan is the lone exception in the Asia Pacific region as it continues its path higher. The Nikkei 225 closed the week at 11606, up 47 points for Friday. Australia’s ASX 200 closed down 18 points to 5086.

Aussie Dollar Rises In The Forex And Binary Options Market

The Aussie dollar is higher in the forex and binary options market against all its major peers. Traders are pricing in no interest rate change by the RBA at next week’s meeting. The 1.02 level in the AUD/USD pair is proving to be very strong support. If global stock markets can continue higher, the Aussie dollar should bounce higher. My only concern is the weakness we’re seeing in the commodities space. Gold and oil have been rather weak recently and the Aussie dollar is a commodity currency. Further weakness in the price of commodities will prevent a sustained bounce in the Aussie.

The AUD/USD is trading at 1.02319, AUD/JPY 94.624, and the AUD/NZD is at 1.23678.

Euro Continues To Trade Weak In Forex And Binary Options Trading

The euro is going to finish lower against the US dollar again this week. The data recently out of Europe has been rather weak and that has made traders reassess their view of the European recovery. Traders were also initially worried about the election gridlock in Italy, but that is likely to be resolved shortly. Bersani and Berlusconi will likely come to an agreement to govern the country.

The EUR/USD is trading at 1.30692, the EUR/JPY at 120.912, and the EUR/GBP at .86127.

Oil Trading Weak As OPEC Output Climbs

The crude oil market has been trading weak again this week on the back of negative economic data out of Europe and as OPEC production climbs. China’s Purchasing Manager’s Index for February also came in weaker than expected at 50.1, just above the key 50 level that indicates expansion. Once WTI failed to break thru the key $98 level, prices have been on a downward skid as longs booked profits and the bears pressed their shorts. The next critical level for WTI is $90. WTI is trading at $91.81 and Brent at $110.98.

Investors Sold This Week’s Rally In Gold Prices

Traders used the run-up in gold prices to $1620 to sell. Gold rallied to $1620 after Fed Chairman Ben Bernanke said that monetary stimulus was here to stay. Traders used that as a selling opportunity and have pushed gold prices back down. Binary options on gold are at $1580 and silver $28.55.

Economic Data Calendar

All Times GMT

  • 0700 German Retail Sales -1.8% forecast -3.7% prev (EUR)
  • 0813 Spanish Manufacturing PMI 46.5 forecast 46.1 prev (EUR)
  • 0830 Swiss SVME PMI 52.2 forecast 52.5 prev (CHF)
  • 0845 Italian Manufacturing PMI 47.60 forecast 47.80 prev (EUR)
  • 0850 French Manufacturing PMI 43.6 forecast 43.6 prev (EUR)
  • 0855 German Manufacturing PMI 50.1 forecast 50.1 prev (EUR)
  • 0900 Italian Quarterly Unemployment Rate 10.8% forecast 10.6% prev (EUR)
  • 0900 European Manufacturing PMI 47.8 forecast 47.8 prev (EUR)
  • 0900 Italian Monthly Unemployment Rate 11.3% forecast 11.2% prev (EUR)
  • 0930 British Manufacturing PMI 51.0 forecast 50.8 prev (GBP)
  • 1000 European Unemployment Rate 11.8% forecast 11.7% prev (EUR)
  • 1330 US Core PCE Price Index (MoM) 0.2% forecast 0.0% prev (USD)
  • 1330 US Personal Income (MoM) -2.2% forecast 2.6% prev (USD)
  • 1330 US Personal Spending (MoM) 0.2% forecast 0.2% prev (USD)
  • 1330 Canadian GDP (MoM) -0.1% forecast 0.3% prev (CAD)
  • 1400 US Manufacturing PMI 55.20 forecast 55.20 prev (USD)
  • 1455 Michigan Consumer Sentiment 76.3 forecast 76.3 prev (USD)
  • 1500 US Construction Spending (MoM) 0.4% forecast 0.9% prev (USD)
  • 1500 ISM Manufacturing Index 52.5 forecast 53.1 prev (USD)

As always, good luck to all forex and binary options traders. Be sure to check back for the latest updates!