Binary Option and Forex News Update for 2/8 thru 2/13/15
Hot money or hot mess? Here’s your binary option and forex news update for February 8th thru the 13th, 2015.
If your looking at volatility as hot money, instead of a hot mess, then this is the time to be feasting on your currency pairings for big time profit. Follow the fundamental market news releases right here with SmallMoneyMadeBig.com where we provide you the edge on all your technical trades.
Developments on the Asian market forefront have currencies, like the Yen, caught in a staring contest with China to see who will blink first. With China looking to weaken their currency (yuan), the chain reaction will have big time impact for their Asian currency counterparts. This impact, in turn, will affect the global currency markets with a domino effect of volatility.
SmallMoneyMadeBig.com called it at the beginning of the year. We are experiencing unprecedented volatility, market shocks and aftershocks, that if positioned correctly, will have you “in the money” time and time again.
Let’s take a look at what’s on tap this week for your major currency market trades:
China – Year over year CPI. We can anticipate that China’s government manipulated currency will reveal a trend towards a weakening Consumer Price Index, that will have them hinting towards competitive easing, to boost exports and spurn activity that will have their Asian Pacific counterparts reeling for their next move.
The Aussie (AUD)– RBA Governor Stevens speaks twice this week, NAB Business Confidence, Employment change and unemployment rate.
Things will continue to get interesting for your Aussie pairings. We saw some amount of stabilization on the latter part of the week after the roller coaster ride of the last couple of weeks.
With so much reliance on China’s economic developments, regarding import/export activities that affect the Aussie, we can anticipate that a theme of devaluing is prime to continue. Last week’s stabilizing support level may not last, expect to ride the short bus on your Aussie/USD pairings.
The Euro might play quietly this week with no major news releases that will hold weight on the currency. But don’t be surprised to see a bit of a rebound, as it begins to show signs of shoring up its lackluster performance, that has plagued it since entering the new year. We still keep a close eye on the developments with Greece and the new regime, that appears, to be better served if it acquiesced to some form of austerity. The ECB and the German approach will be to keep a tight lid on the growing anti-austerity movement.
The Sterling (GBP) – Month over month Manufacturing Production, the BOE (Bank of England) Governor Carney speaks and BOE Inflation Report.
It’s a mixed bag of opinions for the Sterling, with some economic pundits calling for the MPC (Monetary Policy Committee) to take action sooner rather than later, and yet others crying out for some form of additional easing to follow suit with other currency counter parts (i.e. Bank of Japan, European Central Bank and the Reserve Bank of Australia).
We believe the cries for easing should fall on deaf ears. The numbers would reveal a measured approach that would keep things, as they are, for the time being. The U.K’s economy is better positioned than its counterparts to withstand the current pressures of low inflation. At the same time, the earliest we’ll see any rate hike action doesn’t appear to be before the end of this year or beyond into 2016. We anticipate that the verbiage from Governor Carney’s speech will bear this out.
The Loonie (CAD) – Month over month Manufacturing Sales. Your USD/CAD Loonie pairing may continue to see a slight rebound if we see a sustainable and prolonged rise in the price of oil. If the rally sticks and takes hold the Loonie will bounce back with at least one foot out of the sludge. If there is no real traction to the rally on oil prices anticipate added weakness weighing on the Loonie.
The USD – Month over month Core Retail Sales, Retail Sales, Unemployment Claims and Preliminary University of Michigan Consumer Sentiment.
What appears to be an ongoing plague to the American economy is the total stagnation of wage growth. Even though the economic data has shown mixed signals, the U.S. economy has been riding a wave and flexing its strength in recent month’s. But the drawback looms near, if the hard data reveals that the recent “Super USD” strength may be more of a temporary blip of “juiced up” numbers. Trader’s may now be paying attention to the underlying kryptonite that could be exposing a vital weakness going forward.
With global currencies “in flux”, the hot money is ready to be handled by those who can take the heat and will leave those that hesitate, wilting away like a hot mess. Which side are you on?
Always stay tuned to SmallMoneyMadeBig.com and check out our market event calendar for all your fundamental news that impacts your technical trades on your binary option and forex highway of success. Check out our easy-to-use winning trading systems that will keep you “in the money” over and over again.