Europe’s Financial Troubles Help Greenback Rise

The eurozone’s economic worries led the USD to soar at the end of last week’s trading session, making substantial gains against its leading currency peers. The EUR/USD forex binary option tumbled on Friday by 0.29% to $1.2710. The USD/CHF currency pair jumped 0.3% to 0.9486 Swiss Francs.

The GBP/USD dropped 0.54% to $1.5897. Economists claim that if the economic woes in the eurozone will worsen, and if the US will publish positive data, it is most likely that the dollar will continue to climb in the coming trading days.

The major binary option commodities fell at the beginning of last week’s trading session, but made a comeback on Friday. Crude, gold and silver were all performing bullishly on Friday. Following Obama’s re-election as US president, investors’ risk-appetite increased. Gold futures increased $4.85 to $1,730.85 at the end of Friday’s session. Crude jumped $1.14 to $86.06. Binary options traders are hoping that commodities will continue with their bullish streak this week.

Last week’s trading session was a bearish one for the leading indices. Wednesday’s and Thursday’s losses were significant. The Dow Jones dropped on Friday by 4.07 points to 12,815.39.

The coming week promises a lot of market movement. Keep a lookout for important economic data which will be released from the US, UK and the eurozone.


This week’s main events – Monday November 12 – Friday November 16:

Monday November 12:
All Day EUR Eurogroup Meetings – The Eurogroup coordinates economic policies of the 17 euro area member states.

Tuesday November 13:
09:30 GMT GBP CPI y/y – The average price of various goods and services are sampled and then compared to the sampling done a year earlier.

10:00 GMT EUR German ZEW Economic Sentiment – Level of a diffusion index based on surveyed German institutional investors and analysts. Above 0.0 indicates optimism, below indicates pessimism. It's a leading indicator of economic health.

Wednesday November 14:
09:30 GMT GBP Claimant Count Change – Change in the number of people claiming unemployment-related benefits during the previous month. The number of unemployed people is an important signal of overall economic health.

10:30 GMT GBP BOE Gov King Speaks – Due to hold a press conference, along with other MPC members, about the Inflation Report, in London.

13:30 GMT USD Retail Sales – It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.

19:00 GMT USD FOMC Meeting Minutes – It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.

Thursday November 15:
09:30 GMT GBP Retail Sales – Change in the total value of inflation-adjusted sales at the retail level.

12:30 GMT USD Unemployment Claims – Export demand also impacts production and prices at domestic manufacturers. This will play a pivotal role in determining how strong the dollar will be during Thursday's trading session, so follow it closely.

18:20 GMT USD Fed Chairman Bernanke Speaks – Due to speak about housing and mortgage markets at the HOPE Global Financial Dignity Summit, in Atlanta. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person.

Friday November 16:
13:30 GMT CAD Foreign Securities Purchases – Total value of domestic stocks, bonds, and money-market assets purchased by foreigners during the reported month. Demand for domestic securities and currency demand are directly linked.

14:15 GMT USD Industrial Production m/m – Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. Production reacts quickly to ups and downs in the business cycle.