This week is neutral for the binary instruments. The start was good for the binary options. They managed to advance in early trading. However, the upside direction lost steam
quickly. Sideways moves took place and the downside pressure increased. The trading ranges have been tight because the selling pressure was not so fierce while the buying
activity has been limited. The important news about the U.S. job report is due to be released on Friday. It could influence the binary options in some way. Next week will offer much more opportunities for trading because it is the start of the earning season. Many companies will release their quarterly results. Volatility is likely to increase dramatically.
The biggest winners of the week are binary Sugar and binary Coffee. They are positively impacted by the rainy weather in Brazil. As it is well-known both assets are in correlation with what is happening in Brazil. The country is the largest producer of sugar and coffee. Furthermore, the binary options of the underlying commodities have reached multi-year lows recently. They have been oversold. So, the upside pressure was normal to print on the screen. Binary sugar added 5.1% closing at $0.22, whereas the binary coffee managed to increase by 3.8% or $1.80.
The biggest losers of the week are binary EUR and CHF. They decreased both by 2.2%. Binary EUR lost ground as a result of the interest rate cut by 0.25 basis points. It revealed the uncertain economic landscape in Europe and the binary traders sold the binary currency.
Binary Gold is slightly down this week. It continues trading in a range of $70 for the last 2 months. There is not enough determination of neither side of the market. The binary options are negatively impacted by the increasing U.S Dollar. The underlying commodity fell by almost 0.5% at $1590. Binary silver tested higher levels but could not manage to hold ground and eventually retreated by the end of the week. It is the result of the downside pressure on over all binary commodities. The binary options closed at $27.20 losing 0.7% of its value. Binary oil was the only winner among its commodity peers. It underwent a tremendous volatility before closing slightly higher. The distance between the high and low is about $6. The binary traders were able to place many profitable trades. The close came in at $84.90.
The greenback advanced against its peers this week. It added 1.3% to its value backed by the uncertainty about the upside potential of the binary indexes. The binary traders preferred to switch to the underlying binary currency rather than holding binary call options on indexes. Binary AUD increased by 0.3%, while CAD finished the week almost unchanged adding 0.1%.
Binary indexes underwent different changes this week. However, one thing is common for all. The upside potential seems to be limited. After a strong beginning of the week, the binary options could not manage to increase further higher and lost ground leaving huge shadows above them. It is a sign of weakness which is likely to take shape nest week. German DAX30 is one of the indexes having finished the week in the green. It advanced by 0.4% closing at 6457 points. Binary FTSE100 was well bid adding 1.2%. American indexes were all in the red. Binary S&P500 lost 0.6% while Dow Jones Industrials decreased by 0.7%.
The range of change of the other traded instruments is between +0.0% to -0.90%, as follows:
The above information is as of 29.06.2012, 04:06:15 EDT
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.