Is it true?…Are you as much a financial guru as Yellen? (click here to watch the video)
This is your binary option and forex video news update for May 25th through the 29th, 2015.
On this lighter week of relevant data that will impact your currency trading, it’s important to keep your eye on happenings that will create points of market volatility in order to find yourself “in the money” for the week.
With all the speaking engagements that took place last week from the world’s major finance “guru’s” only a few things stood out that look to have impact on their respective currencies, going forward, as we approach closing out the second quarter of the year.
We be Yellen! That’s right! We be Yellen from the roof tops that the Fed chair has as much a clue about what will happen to the U.S. economy as a Miss America contestant knows about geography.
In her latest speech just this last week, I quote from Fed Chair Yellen “Of course, the outlook for the economy is highly uncertain. I am describing the outlook that I see as most likely, but based on many years of making economic projections, I can assure you that any specific projection I write down will turn out to be wrong”
Isn’t that re-assuring?
At points, it sounds like rhetoric surrounding “data dependent moves” by the Fed’s gets thrown out the window. With an already bubbling agenda to lift rates this year, no matter what the data reveals or what the repercussions for a lackluster economy may entail, Yellen and the Fed’s are more concerned with a “we’d better do it now” (meaning this year) approach. The Fed’s don’t want the opportunity of raising rates to slip through their slimy fingers and still risk having the U.S. economy, that’s been sloshing out of the mud, to take a wrong step and start sinking in quicksand.
The rest of these financial “guru’s” that include Draghi, Carney, Kuroda and Poloz don’t bode much better in their analysis and ability to accurately forecast the future economical status of their respective economies.
Here’s a side note: This bodes well for traders like you and me. If you have a plan and a good strategy for your currency trades, your chances of success are just as good, or better, than the finance “guru’s” who are supposed to be running the show.
For the last year, it’s been speculated that a Fed rate hike was supposed to take place in June. This is pretty much “off the table”, but the hawks will still be hovering and ready to pounce by the end of the third quarter.
With the impact of various scenario’s this week, what is a trader to do? This week a point of focus should be made on the following:
Coming off last week’s turn in the Euro/USD, be prepared to see the pairing go weak as it appears to be a rocky road for the Euro and time for the USD to bust a move.
The snowball that caused an uphill climb for the USD may now have the pendulum of momentum swinging the other way. The effects of a harsh winter that temporarily rippled weakness across the important sectors of housing, construction and retail sales are anticipated to pick up steam heading into the third quarter of the year.
Trader’s are going to jump on board at the first hint of solid U.S. economic momentum, keeping in mind, that the Fed’s will be making a full court press to justify a rate hike before the end of the year.
Couple this economic mindset, along with the Euro zone becoming more and more willing to accept the cliff dive into Greek default, and the recipe calls for more mustard on the American dog as the Euro appears to be on a forced diet that will have the currency feeling the hunger pangs. The ride down for the Euro/USD may be just starting to get its freak on.
This week, pay close attention to the G7 meetings and the hard U.S. data for GDP and unemployment.
Always check out our events calendar for all the happenings that affect your binary option and forex trades. When you mesh your smarts with a winning trading system, it does become true that you’re a better financial “guru” than Fed Chair Yellen.
Check out one of our winning trading systems at SmallMoneyMadeBig.com and click the learn more button to get the edge that makes you the envy of any “guru”.