US Currency Outlook: Bullish On EUR/USD, JPY/USD

The political class in the United States is so divided right now, that any good news is amplified by one side while dismissed by the other. Conversely, when the figures are less than encouraging, one party will aim to turn the numbers into a looming disaster, while the other will suggest that the consequences are nearly irrelevant. This is why binary options traders need to be particularly careful these days when purchasing put and call options, and take a look at the bigger picture before opening positions. The best way to evaluate the USD performance is by taking a look at each of the frequently traded currency pairs.

Stay Away From USD/CAD and USD/AUD Pairs

These two currency pairs suffered minor changes throughout the last couple of weeks, but at the end of the day they returned to the initial value. The news coming from Australia was contradictory and what traders initially gained they lost eventually, and this financial Ping-Pong could very well continue for a couple of more weeks. The employment outlook is equally positive on both continents, but none of the numbers are significant enough to make a real difference and recommend put or call options.

The Canadian dollar was more vibrant last week and the reason for the surge is that more than 50,000 jobs were created in February. Keeping unemployment low is one of the reasons for why the CAD gained some value over its southern counterpart, despite the fact that the GDP was negative. The United States economy also created more jobs than expected by Democrats, but Republicans dismiss this as nothing more than a spike and are wary about the next weeks. Binary options traders have very little to gain by focusing their attention on either of these two currency pairs, and should look elsewhere for profits.

Traders Should Remain Bullish On EUR/USD and JPY/USD

The European economies are struggling heavily and the recent elections in Italy will only aggravate matters, so the Euro has plenty of room for movement. The fact that German business indicators are encouraging is not enough to stop the continental currency from slipping even further. Even the most successful European country is showing signs of weakness and the decrease in factory orders is pretty scary. By contrast, the American fiscal policy seems to be finally producing positive results, with both consumer and business confidence improving recently.

Bank of Japan is scheduled to meet soon but so far the promises made by the new governor were not backed up by concrete actions. As the US economic recovery continues, the JPY/USD is expected to remain just as volatile as it was in early March, and binary options traders are entitled to bet on the trend to continue. In Japan the authorities are poised to eliminate deflation and say that the economy is on the right tracks, but similar promises have been heard in the past.