› Weekly Binary Options Review (Dec 11 - Dec 15)

Weekly Binary Options Review (Dec 11 - Dec 15)

Three interest rate decisions from the European Central Bank (ECB), the Federal Reserve (Fed) and the Bank of England (BOE) entering the spotlight have extremely buoyed financial markets during the week.
In this article, we would like to present the review of the binary options market during the period from Dec 11 to Dec 15, targeting the prospects of major currency pairs.

Earlier this week saw no important economic announcements coming in. In addition, global traders halted their activity to prepare for Thursday’s docket, which was full of crucial releases, therefore, the market remained quite waveless.

This Tuesday, as usual, was the day that the week’s volatility began.
UK’s CPI was confirmed at 3.1%, surpassing economists’ forecasts for an unchanged figure of 3.0%.
Meanwhile, U.S. PPI m/m remained at 0.4% which matched anticipation.
Howbeit, GPB/USD has been wobbling on those outcomes and ended the day below its open, dumbfounding traders who expected for a rising Sterling.

On the same day, ECB’s Mario Draghi had a dovish talk, weighing on the Euro.
Since his speech hinted the ECB’s Thursday actions, EUR/USD was pushed lower as traders’ expectations for hawkish steps on monetary policy popped.

The U.S. central bank was the first bank entering the spotlight this week.
As widely predicted, the Fed implemented a dovish rate hike of 0.25%.
However, market participants were again dumbfounded by the US Dollar’s modest reaction to the Fed’s tightening plan announcement that there would be three rate hikes in 2018.
Most of the cross – USD have been developing bullish candlesticks on Wednesday.

In a separate development, UK’s Average Earnings Index printed a pick-up of 0.2% from its previous releases of 2.3%.
This helped accelerate the Sterling - Greenback’s stabilization.

U.S. CPI and Core CPI were also reported on Dec 13.
The CPI rate advanced to 0.4% from 0.1%, matching analysts’ forecasts, while the Core CPI rate trivially slid to 0.1% from 0.2%.
However, the news did little impact on the US Dollar as the market mostly eyed the Fed’s rate decision.

This Thursday was the week’s most volatile day due to a load of significant reports and announcements.
The BOE, as anticipated, left the policy interest rate unchanged at 0.5%, with its MPC Official Bank Rate Votes confirmed at 0-0-9 (all voters balloted to endorse a wait-and-see approach).
However, instead of presenting a negative reaction, the British Pound traded higher because worries about Brexit were eased.
Besides, UK’s Retail Sales was affirmed strongly climbing to 1.1% from 0.5%, stabilizing the GBP’s strength.

Exactly as the market had foreseen, the ECB’s boss kept borrowing costs on hold at 0.0% and remained in no rush to move away from the easing-cycle despite the Eurozone’s economic outlook improved.
EUR/USD sharply headed lower on Draghi’s announcement.

On the same day, there were also some important releases printing.
Australia’s Employment Change climbing to 61.6K from 7.8K along with the Unemployment Rate continuing at the record low of 5.4% have vigorously fueled the Australian Dollar.
Hence, the AUD/USD bears were overwhelmed despite both U.S. Retail Sales and Core Retail Sales reports printing positive figures.

Thursday also witnessed the Swiss National Bank announce to hold interest rates at -0.75% without offering any clues about tightening monetary policy.

The binary options market returned to be static on Friday since there were no economic reports broadcast.


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