› Weekly Binary Options Review (Oct 16 - Oct 20)

Weekly Binary Options Review (Oct 16 - Oct 20)

Multiple economic data releases from top-tier economies coming in this week have led global financial
markets to be extremely volatile. In this article, we present the review of the binary options market during
the period from Oct 16 to Oct 20, targeting on the prospects of the major currencies.

New Zealand’s CPI q/q kicked off the buoyant atmosphere on Monday with the figure confirmed at 0.5%,
growing well from the no-growth level and surpassing economist’s forecasts of 0.4%. Most Kiwi-cross
pairs have been trading higher on the good news.

This Tuesday saw Australia’s Monetary Policy Meeting Minutes take place with no fireworks as the RBA
“saw rate setters worrying aloud, again, about the effects of a strong currency”, driving the Australian
Dollar to head lower against its G10 FX counterparts.

In a separate development, U.K. CPI y/y matched analyst’s prediction with a slight increase to 3.0% from
the September level of 2.9%. In addition, Bank of England Governor Mark Carney, in his meeting on the
same day, offered no guidance about the next steps for monetary policy. These factors caused the British
Pound to descend versus its crosses, delivering dozens of putting opportunities for binary options traders
who love to trade the GBP/USD pair.

European Central Bank President Mario Draghi brought fuels for the Euro on Wednesday this week as he
implied at the fate of QE asset purchases ahead of next week’s policy meeting. In all likelihood, traders
have found plenty of calling occasions on the EUR/USD currency pair since it nicely reversed to trade
higher after the outcome.

On the same day, UK’s Average Earnings Index 3m/y came in at 2.2% which was equal to the report
announced last month and overcame analyst’s estimates of 2.1%. Combined with the U.S. Building
Permits figure which was down to 1.22M from its previous announcement of 1.27M, the Sterling –
Greenback has spent a day pushing higher.

Exactly as having been forecasted, Australia’s Employment data was reported strongly dropping from the
previous level of 53.0K on Thursday this week. However, its confirmed number of 19.8K was still better
than trader’s estimates of 14.1K. Besides, Australia’s Unemployment Rate positively decreased to 5.5%
which remained around the record low, leading the Aussie to ascend versus its counterparts.

In a separate development, two China’s releases came in oppositely. The GDP q/y was affirmed trivially
declining to 6.8% from its 6.9% level, matching economist’s forecasts, while the industrial Production y/y
data advanced by 0.6% compared to its September figure of 6.0%. Most cross-CNY currency pairs have
found themselves gamboling on the outcomes.

U.K. Retail Sales m/m was also confirmed on the same day, with the data strongly falling to the negative
number of -0.8% from its previous announcement of 0.9%. Combined with the U.S. Unemployment
Claims data positively declining to 222K from the 244K level reported on Oct 12, the British Pound – US
Dollar has spent a day fairly descending, delivering plenty of bearish signals for GBP/USD’s putters.

By the end of this week, there were two Canada’s economic announcements coming in. The CPI data
slightly rose to 0.2% from its last rate of 0.1%, remaining below trader’s expectations of 0.3%. Meanwhile,
Canada’s Core Retail Sales posted a deep plunge to -0.7% from the 0.2% level, destroying all hopes for a
rising number to 0.3%. The Greenback – Loonie has surged right after the releases.

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