› Weekly Binary Options Market Review (Jun 17 - Jun 23)

Weekly Binary Options Market Review (Jun 17 - Jun 23)

In this article, we would like to present the review of the binary options market during the period from Jun 17 to Jun 23, targeting the prospects of major instruments.
Financial markets were buoyant since the beginning of the week due to European Central Bank President Mario Draghi’s opening remarks at Sintra conference. Euro bulls came into the fray and helped stabilize the single currency versus its counterparts.

June Monetary Policy Meeting Minutes of the Reserve Bank of Australia took place on Tuesday, making the Australian Dollar heavily centered. In contrast with the hawkish rhetoric brought in May monetary policy meeting: “it was more likely that the next move in the cash rate would be up, rather than down,” this June meeting witnessed a dovish tone from the RBA’s boss despite the fact he remained optimistic on the Australian economic growth. The Aussie immediately responded negatively to Lowe’s announcement, sending most of the AUD-denominated assets lower. However, AUD/USD got a stabilization during the day’s New York trading session since U.S. Building Permits data came in below expectations (1.30M versus analysts’ forecasts of 1.35M). Many of the other currency - USD pairs also posted rallies.

The other item of interest on Tuesday was the ECB boss’ speech. Draghi said the ECB would remain “patient and gradual with rate hikes.” As it was considered a dovish implication, the Euro found itself deteriorating against major currencies.

Wednesday witnessed the market become highly volatile as Central Bankers of four top-tier economies spoke in Sintra, Portugal. All of the officials shared similar worries as to the ongoing trade war and its impact, as well as their stance on monetary policy in response.

Bank of Japan President Haruhiko Kuroda continued dovish on monetary policy as Japan’s May data showed weak inflation. Governor Philip Lowe from the RBA also remained in no hurry to move away from the easing cycle. Meanwhile, the Fed’s Powell gave hawkish rhetoric, saying that more interest rate hikes would be executed. Hence, the Greenback found itself heading higher versus most of its namesakes, including the Euro, Japanese Yen, and Aussie.

New Zealand’s first quarter GDP report was also divulged on the same day. Precisely as economists had predicted, the figure came in at 0.5%, dropping 0.1% from its last release. Kiwi bears quickly showed up in earnest, leading the NZD/USD currency pair to descend.

Thursday this week had the Swiss National Bank's Jordan and the Bank of England’s Mark Carney in play. The CHF was boosted from the start of the week as trade war tensions escalated; however, the currency saw itself weaken after the SNB’s announcement since President Jordan remained completely dovish on monetary policy. Meanwhile, the Pound Sterling got a highly positive day thanks in large part due to the BOE boss’ vote for a rate hike in the upcoming August meeting. Most of the GBP – currencies headed sharply higher on Carney’s hawkish action.

SNB Chairman Jordan
Source: SNBCHF.com

The end of this week brought two economic data releases out of Canada. Both underperformed analysts’ expectations: CPI m/m dropped to 0.1% versus its past data of 0.3% and forecasts for an advance to 0.4%, while Core Retail Sales m/m climbed slightly to -0.1% from -0.2% instead of strongly rising as anticipated. Needless to say, the Canadian Dollar got a bad affair, resulting in descents of the CAD – currency pairs.

The world’s most famous cryptocurrency this week continued to witness a negative development. At the time of writing, BTC/USD is trading around $6,178.5.

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