ECB And BOE Interest Rate Decision December 4, 2014
Binary Options Strategy | Dec 04, 2014 01:41AM ET
Looking at the Thursday session, we have to economic announcements that could impact trading. We have the European Central Bank with its interest-rate decision, as we also have the Bank of England and its interest-rate decision. These will influence the representative currencies more than anything else, but at the end of the day the biggest problem we had with getting too excited about it is that the nonfarm payrolls come out on Friday. With that, we would anticipate a little bit of volatility in the EUR/USD pair more than anything else, as we have broken down. We look at short-term rallies as put buying opportunities.
Looking at the gold markets, we continue to bang around just above the $1200 level, and we think that if we can get above the $1220 level, calls can be bought heading towards the $1250 level. On the other hand though, if we break down below the $1200 level, we feel that the market will more than likely head down to the $1140 region, offering put buying opportunities going forward.
We are staying clear away from the US stock markets in general, the day before nonfarm payroll typically is fairly quiet after all. Nonetheless, we look at pullbacks as being likely, and should represent value going forward. We have no interest in buying puts, and will only buy calls in these markets as the NASDAQ, the Dow Jones Industrial Average, and the S&P 500 have all performed fairly well.
The USD/JPY pair tested the 120 level during the session on Wednesday, and we feel that a pullback from here is likely but it will only be a short-term momentum building exercise. Ultimately, we are buying calls on supportive candles below, and believe that the 115 level below there is the absolute floor in this market and we have no interest in buying puts.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.