There was subdued trading in Asian markets as speculation increased that the ECB will lower its benchmark rate by at least a quarter of a percentage point today, down to a record-low 0.75% from 1.00%. Asian stocks fell for the first time in a week as investors, who would normally buy stocks ahead of key monetary policy decisions, shrugged off talk the European Central Bank will cut interest rates and sold on the sentiment that a cooling European economy would hurt key export markets for Asia. Hong Kong’s Hang Seng Index fell 0.36%, Australia’s S&P/ASX200 dropped 0.25%, whilst Japan’s Nikkei 225 Index was down 0.28% in low volume trading overnight following on from the national holiday in the US with its financial markets closed for the day.

Yesterday saw the release of sluggish data coming from Europe with Services output shrinking in June for a fifth month in the euro area, Germany experienced surprise contractions in its PMI and services grew less than forecast in the U.K. The Bank of England is due to meet today and whilst interest rates should remain steady at 0.50%, fresh stimulus measures to boost the U.K. economy are expected to be implemented with the target for bond purchases to be raised by £50 billion to £375 billion

There was little movement in the currency markets with the biggest movement seen in the AUD/USD – down 0.18% as Australia’s trade deficit widened in May for a fifth straight month making it the longest streak of monthly deficits since a 12 month run ended in 2010.

Today should be a busy day for binary traders and although there was subdued trading overnight – the wait and see policy should end as we actually see. Key Spanish and French debt auctions begin the day, but with ECB rate decisions and US nonfarm employment figures followed by initial jobless claims in the US – expect some heavy volatility in all areas, making it a potentially very profitable day to trade.

* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.