China binary options country report
Consequently, the Aussie dollar also slid sharply, weakening 1. The European Commission announced that a debt deal has been agreed in principal with Greece that is now subject to parliamentary approval.
Housing starts fell to an annualized pace of , in July, undershooting expectations for ,, while June was revised down slightly from , to , Some of the volatility here will have come from a slowdown in the unpredictable area of condo construction, shown by the 8. The strength of the US dollar has been a concern for US exporters for some time now and the surprise move by the Chinese central bank has exacerbated worries over the future overseas performance of large multinationals.
Shortly after the opening bell, the Dow Jones was down points or 0. Those declines came despite a rebound in second-quarter productivity. The Q1 change was revised up to In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result.
No representation or warranty is given as to the accuracy or completeness of this information. The price of crude oil is dictated by forces of demand and supply. Demand for crude oil is driven by growth. Growth will need more crude oil and its derivatives to fuel expanding industries and all that come along with it. Supply is determined by the quotas set by producing countries, as well as availability of the product if there is a major crisis in countries where it is produced.
So what is the correlation play here? The USD will be negatively affected by higher oil prices. This is because the US is a net importer of crude oil, and more money spent on crude imports will increase the US trade deficit, which is a USD-negative event. Weaker oil prices mean that less money will be spent on crude imports by the US, reducing the trade deficit a USD positive event. Therefore, the trader can trade the change in crude oil prices on the binary platforms as follows:.
This allows the interplay between the USD and crude oil to fully manifest itself. Gold and Inflation Gold has traditionally been treated as a safe haven asset which traders buy into in times of economic crisis, or in times when market participants are in capital preservation mode.
However, when capital is depleted as it will be if the crisis lasts long enough , traders may then trade in their gold stores for cash, leading to a gold sell-off. So it is not a wise idea to trade gold simply on expected demand during crisis periods in the financial markets. Rather, it makes more sense to trade gold as an asset correlated to inflation. This is because gold is better used as a hedge against inflation and not just as a safe-haven, capital preservation asset.
Central banks commonly use interest rates as a way to defeat inflationary pressures. So whenever there is an expectation of inflationary pressure on the economy of a country, it brings an expectation that rates will go up. This brings on a risk-on sentiment to the market, with traders willing to back up such expectations with an increase in gold demand. This is because gold and the USD are inversely correlated. For the binary options trader, watch the inflation reports coming out of Australia and the US, and also watch the Reserve Bank of Australia RBA statements regarding their plans with regards to interest rates, looking closely at the concern they have over inflation.
If you see a hawkish tone in the statement following a rate decision increased or left unchanged with a chance for increase in future , get ready to make a technically-directed entry into gold or the AUDUSD on the CALL side of the trade.