Weekly Binary Market Review: 5 Nov 2012

Monday 5 November, 2012

Last week witnessed many different traders scrambling towards the USD ahead of the U.S. Presidential elections and volatile markets. The USD is viewed as a safe-haven for investments as Gold and Crude Oil fell on Friday to $1,677.95 and $84.83 respectively. The dollar was doing well even with all the chaos emanating from the devastating hurricane Sandy. The EUR/USD pair rose by 0.82% and the AUD/USD fell by 0.6% on Friday as traders are heavily focussing only on USD.

The markets seem to be likely to continue their lacklustre trend over the weeks to come. Risky assets are nowhere near poised to make any sort of comeback. Here’s a look at some of the events to come this week.

EUR

The week starts off with the G20 meeting. The Spanish unemployment report is all set to be released today. Traders are worried as the stock markets tumbled earlier on Friday as rumours about the Spanish unemployment rate reaching around 25% are making the rounds. If the final reports beat the rumoured estimates, the markets are bound to tumble further. Make sure you keep an eye out for the report while trading your options.

U.S. Treasury Secretary Timothy Geithner, right, and Japanese Finance Minister Koriki Jojima

The German Industrial Production index will be out on Wednesday. Industrial production in August fell considerably, signalling the cooling down of Europe’s largest economy. Investors are not increasingly optimistic this time. Traders might be slightly happy if the report shows an increased production.

GBP

The economic calendar for U.K. is a busy one this week with the BOE rate decisions and the Manufacturing Production index release. The Manufacturing Production m/m is set to be released on Tuesday. The report being a key indicator of economic well-being can swing the markets considerably. Keep a wary eye on the report when trading your binary options this Tuesday.

The Asset Purchase Facility that will decide the BOE rates is expected on Thursday. This can influence the asset purchasing power in the market.

USD

Unlike the U.K., the calendar for U.S. is a tad bit idle. The Crude Oil inventories report is expected to be released on Wednesday. This report will furnish the difference in oil barrel inventories for the past week. The bearish crude oil market might show some improvement after the U.S. Presidential election on Tuesday.

The weekly unemployment claims report is expected on Thursday. The report is probably the most significant event of the week as it can have a significant impact on the trading safe haven USD. The Preliminary University of Michigan’s Consumer Sentiment Index is set to release on Friday this week and can also move the otherwise lacklustre markets slightly.

JPY

The Japanese calendar is also not a very busy one. The U.S. fiscal cliff and the European debt are going to be the major topics of discussion. The Core Machinery Orders and the Current Account Data are due on Thursday.

CAD

The Canadian calendar for the week features the Trade Balance Data on Thursday. The Canadian market opens with the G20 Meetings and the Canadian Daylight Saving Time Shift. The Trade Balance Data on Thursday is of great significance as export and currency demand are linked directly and can have a significant impact on production.

AUD

The Australian economic calendar is quite hectic this week. The Australian Cash Rate is set to release on Tuesday. This can push the AUD to new lows as traders are expecting the rates to be reduced by as much as 3%.

The week is set to conclude with the release of the EBA Monetary Policy Statement. The statement is a key document that gives insights into the inflation and economic conditions in Australia. As the Australian monetary policy will depend on the outcome of this event, it can also swing the markets considerably.

NZD

The G20 Meetings open the week and continue on till the Labour Cost Index due on Tuesday. Other events for the week include the Financial Stability Report from RBNZ on Wednesday and the Employment Change report on Thursday.

The Unemployment Report is also scheduled to be released on Wednesday. The Unemployment Report is a significant event for NZD as it serves as an indicator of economic well-being.

Anything to add that we’ve missed? Leave a comment below.