Positive U.S. Data Brings Down U.S. Dollar

Significant market movement led to a far from dull trading session last week, especially when the USD fell against other major currencies on Friday. Strong U.S. consumer confidence data depicted a recent growing positive sentiment for consumers. The USD fall followed the official data’s release. The USD/JPY forex binary option slumped by 0.82% on Friday to 79.64 yen. The EUR/USD currency pair rose by 0.05% to $1.2940. The AUD/USD forex pair accumulated 0.26%, bringing it to the $1.0374 level.

Last week saw instability for the U.S. stock market, with mixed results at Friday’s trading session close. Although positive market sentiment emerged, binary options traders still did not seem to show enough confidence to buy U.S. stocks and indices. The Dow Jones climbed 0.03% at the close of the session, ending at 13,107.21.

Binary option commodities gold and crude oil have been known to fall lately, and last week was no exception. Traders decided to sell the two major commodities. A decreasing demand and increasing crude oil inventories led oil prices to slump even further. Gold dropped as well, as a result of investors’ lack of risk appetite.

Traders anticipate strong data from the major economies, which will greatly affect their binary options trades.

This week’s main events – Monday October 29 – Monday November 2:

Monday October 29:
23:30 GMT JPY Household Spending y/y – Change in the inflation-adjusted value of all expenditures by consumers.

Tuesday October 30:
08:00 GMT EUR ECB President Draghi Speaks – Due to deliver opening remarks at the Second Conference of the Macro-Prudential Research Network of the European System of Central Banks, in Frankfurt.

14:00 GMT USD CB Consumer Confidence – Survey of about 5,000 households which asks respondents to rate the relative level of current and future economic conditions including labor availability, business conditions, and overall economic situation.

Wednesday October 31:
00:30 GMT AUD Building Approvals m/m – It's an excellent gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building.

07:00 GMT EUR German Retail Sales m/m – Change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.

14:30 GMT USD Crude Oil Inventories – The change in the number of barrels of Crude Oil held in inventory by commercial firms during the past week.

12:30 GMT CAD GDP m/m – Change in the inflation-adjusted value of all goods and services produced by the economy. It's the broadest measure of economic activity and the primary gauge of the economy's health.

Thursday November 1:
09:30 GMT EUR Manufacturing PMI – Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.

12:15 GMT USD ADP Non-Farm Employment Change – Estimated change in the number of employed people during the previous month, excluding the farming industry and government. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

23:50 GMT JPY Monetary Policy Meeting Minutes – It's a detailed record of the BOJ Policy Board's meeting on where to set interest rates.

Friday November 2:
00:30 GMT AUD PPI q/q – It's a leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer.

12:30 GMT USD Non-Farm Employment Change – Change in the number of employed people during the previous month, excluding the farming industry.