The impact of this week's market reports kicked off with the British Pound early Monday morning when their Manufacturing Production (m/m) was released at 4:30 am EDT. Although the forecast was expected at .3%, the actual number was -1.4%, which was the biggest monthly drop since 2012. Both the GBPUSD and GBPJPY did a nosedive falling over 70 pips each within the hour. And, the week just started.
Today, most of the currencies have surged upwards on breaking news that President Trump and North Korea's Kim Jong Un have committed to denuclearization.
The bigger news will more than likely be later in the week when the FOMC releases its Economic Projections, Statement, Federal Funds Rate at 2:00 pm EDT and Press Conference at 2:30 pm EDT (Wednesday). This is considered the FOMC quad report and typically creates excessive market volatility. Currently, the CME FedWatch Tool shows a 91.3% probability of a rate increase from 150-175. Interestingly, the probability decreased from 95% to 91.3% within the last week and the probability of no interest rate increase went up from 5% to 8.7% within the last week. Could the FOMC surprise traders and not raise interest rates? Anything is possible but more likely than not they will raise interest rates but traders will be listening carefully during the FOMC Press Conference for additional clues on further interest rate increases, as well as more details on the FOMC Economic Projections, especially since some analysts and money managers are predicting another recession recession is likely in 2019.
Then on Thursday at 7:45 am EDT the Main Refinancing Rate for the Euro will be announced, followed by the ECB Press Conference at 8:30 am EDT. With recent comments by the ECB's Chief Economist Peter Praet, traders will be listening to the ECB's Press Conference to see when they plan to end the quantitative easing (QE) program.
Then early late Thursday evening into Friday morning, the Bank of Japan will issue its Monetary Policy Statement and BOJ Policy Rate, followed by a press conference, as well. Traders will be looking to see if the Bank of Japan cuts their inflation forecasts or not.
In addition to the rate announcements and press conferences, each day is filled with other market reports, as well as the continuation of the trade wars between the US, Canada, and European countries. With so much uncertainity and anticipated market news, binary options and spreads are a great alternative for traders that want to participate in the markets with limited risk. Nadex Binary Options and Spreads provide a free demo account for you to learn to trade these high volatility reports within a limited risk enviroment. Sign-up for your free account today.