› Weekly Binary Options Market Review (Jul 16 - Jul 20)

Weekly Binary Options Market Review (Jul 16 - Jul 20)

Financial markets all over the world were looking at Chinese economic reports released on Monday, July 16. Industrial Production growth was lower-than-expected, posting result of 6.0% on yearly basis in June, while 6.5% growth was expected by analysts. However it was the only negative report, as all of the rest data managed to beat the expectations. Chinese GDP rose 1.8% in second quarter versus 1.6% expected, Employment rate was steady at 4.8%, while Retails Sales had an unexpected jump of 9.0% versus 8.8% expected. Chinese Yuan traded lowe the past week, but this is related to trade tensions with US, but not with economical outlook. International investors still believe in Chinese economy growth and keep investing in the country. Some analysts say that current slide of the Chinese Yuan is an attractive long-term buying opportunity.

New Zealand CPI, published on Tuesday, did not give any support to Kiwi bulls, as the inflation report was much lower-than expected: 1.5% yearly and 0.4% quarterly. Reserve Bank of Australia’s meeting minutes did not support Aussie bulls nad AUD/USD keeps trading at the same tight range as before. British pound was one of the main losers among major currencies. Bank of England Governor Carney’s speech and British Earnings and Employment reports failed to support Cable bulls during his speech on Tuesday.

The GBP/USD selloff continued on Wednesday as well. British CPI both monthly (unchanged in June) and yearly (+2.4% vs 2.6% expected) reports were ugly. Core CPI and PPI did not add any positive outlook for the inflation perspective. Such a disappointment lowered potential chances of further rate hike from BoE. European CPI was in line with expectations: 2.0% year-on-year in June. But some unexpected support came from hawkish ECB officials regarding more positive outlook of the EuroZone economy. EUR/USD showed biggest daily gain also because of some dollar weakness caused by US officials. Jeremy Powell testimony was not so hawkish as some greenback bulls might had expected. But the main hit came from Mr. Trump’s comments about further trade war development.

Japanese exports grew in a much moderate pace in June, as the report showed on Thursday Asian session. 2.5% versus 5.3% expected was definitely negative surprise. So USD/JPY started it’s two days pullback from 113 level. Japanese Yen’s safe haven role also took part in the price action. AUD/USD did not react much on positive Australian Employment Change (+50.9K vs 16.7K expectation). British Retail Sales continued to disappoint (-0.5%), while Philadelphia Fed Manufacturing Index (25.7) was a positive surprise from the other part of the Atlantic.

 USD/JPY
Source: LiteForex


Friday’s Japanese reports did not add any optimism to USD/JPY traders and the pair continued sharp decline. One of the strongest major currencies last week was Canadian dollar. USD/CAD had a dramatic slide down to 1.3150 level on positive news from Canadian Economy. Inflation figures were stable and the Retail Sales jumped to 1.4% vs 0.7% expected.

On the other markets, Crude Oil Inventories came out much higher than it was anticipated. The growth in inventories for 5.836M barrels versus decline of -3.622M expected. This contrast is even more powerful comparing to the previous report of -12.633M barrels. Bears took the Crude Oil WTI market in control with no signs of quick recovery for the bulls. OPEC will start the meeting next week and they will try to support Crude oil prices by cut production measures.


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