BANC DE BINARY’S AHEAD OF THE WEEK REPORT: 28th April – 2nd May 2014
Starting with Monday the 28th of April, the first key trading event of the week comes at 2pm with the release of Pending Home Sales data from the U.S. February figures were the lowest for more than two years and although pending sales are now starting to show signs of stabilising, there is evidence that the housing market will take longer to rebound. A further dip in pending home sales data is therefore expected, prompting Banc De Binary Analysts to look at call options on the euro-dollar.
On Tuesday, we move to the UK for preliminary GDP data at 8.30am. Britain’s economy continues to keep up its rapid pace of late last year. A stronger-than-expected increase in industrial and manufacturing output in February suggests that growth may have accelerated up to 1 percent in the first quarter of 2014. If this is reflected in Tuesday’s figures, there may be possible trading opportunities on GBP pairs, U.K. stocks and the FTSE100 share index.
On Wednesday, the key event of the day is this month’s FOMC meeting where Fed Chair Janet Yellen and members of the Federal Reserve Open Market Committee will discuss interest rates. The aim will be to guide market expectations and minimise the risks of sudden adjustments in interest rates as the FOMC winds down its quantitative easing program. The outcome of the meeting will provide binary options traders with important information regarding future monetary policy by the U.S. Central Bank and is one of the main drivers of the Eurodollar.
Following Wednesday’s FOMC meeting, are Thursday’s U.S. Unemployment Claims. New filings for unemployment benefits have recently fallen to seven-year lows signaling accelerating growth in the labour market. This time, analysts are expecting a pause in the falling rate of layoffs and are predicting a modest rise to 313,000 claims in this week’s estimate. This may apply downward pressure on the U.S. dollar presenting call opportunities on the euro/dollar.
And following on from Thursday’s Unemployment claims, we end the week on Friday with the all-important Non-Farm Payrolls report. The April employment report will likely show that non-farm payrolls rose more than 200,000.However, traders are stillwaiting for clearer clues from the US economy and the Fed, so even if the latest NFP reading shows an increase in hiring, numbers may be weaker than estimated gains.In this case, Banc De Binary analysts will be looking at possible call opportunities on the euro-dollar.
That concludes our round-up of the key trading events for the 28thApril to the 2nd May 2014.