› Weekly Binary Options Review (Oct 2 - Oct 6)

Weekly Binary Options Review (Oct 2 - Oct 6)

Global financial markets had an effervescent week thanks in large part due to Federal Reserve Chair Janet Yellen’s speech and U.S. employment reports. In this article, we present the review of the binary options market during the period from Oct 2 to Oct 6, focusing on the prospects of the major currencies.

On Monday, there were two significant economic announcements of the UK and the US driving financial markets to be volatile. UK’s Manufacturing PMI was confirmed at 55.9, remaining below both analyst’s forecasts and the previous level (56.7). Meanwhile, U.S. ISM Manufacturing PMI came in at 60.8, up from the prior number of 58.8. These two factors caused the British Pound – US Dollar pair to plunge deeply from earlier this week, delivering happiness to GBP/USD’s putters.

Binary options traders switched their attention to the Australian Dollar on this Tuesday because of the Reserve Bank of Australia Rate Statement. However, as widely anticipated, RBA Governor Philip Lowe continued to endorse the wait-and-see approach, sending the Aussie lower versus its FX counterparts. In a separate development, UK’s Construction PMI was broadcast strongly decreasing to 48.1 from the 51.1 level, making Pound Sterling head lower. In all likelihood, GBP/AUD did have a fluctuant day.

Needless to say, Wednesday this week has been a buoyant day as a series of important economic news from top-tier economies came in. Sterling’s downward movement was paused thanks to U.K. Services PMI posting a slight rise. Nevertheless, GBP/USD eventually traded lower the whole day, mainly due to two U.S. releases positively affirmed: the ISM Non-Manufacturing PMI was divulged at 59.8, nicely beating economist’s expectations of 55.5, while the ADP Non-Farm Employment data, despite being lower than the previous report, was still higher than analyst’s prediction.

On the same day, there were speaks from ECB President Mario Draghi and Fed Chair Yellen. Draghi offered no attentive information, while Yellen reiterated a little about the low inflation issue.

Oct 5 saw the volatile string of the week continue due to crucial monetary releases from Australia, Canada, and the US. Australia’s Retail Sales was confirmed negatively dropping to -0.6% from the August rate of -0.2%, in contrast with the Trade Balance divulged rising to 0.99B from the 0.81B level, leading to a struggled Aussie. Meanwhile, Canada’s Trade Balance lost 0.4B, broadcast at -3.4B, bringing dozens of calling signals for traders who are fans of the cross-CAD currency pairs. Finally, U.S. unemployment data was reported subtracting 12K claims compared to the previous release, driving the Greenback higher.

This Thursday also heard speaks from FOMC Member Jerome Powell. However, there were no hawkish hints dropped.

The Greenback was the most attentive currency by the end of the week because all eyes had been on U.S. Non-Farm Employment release which influenced much the Fed’s rate hike decision in December 2017. Unfortunately, the outcome was affirmed disappointing as the figure decreased strongly to a negative number -33K which was even far worse than analyst’s forecasts of 82K. Nonetheless, thanks to the Average Hourly Earnings data advancing to 0.5% from its last announcement of 0.2% in addition to the Unemployment Rate marking a new record low (4.2%), the Greenback was not too badly affected.

In a separate development, Canada’s employment suffered a 12K shrinkage, but the unemployment rate continued to remain at the record low 6.2%, making the Canadian Dollar flat on Friday.

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