Binary Options News : October 28, 2012
A volatile trading session on Friday ended with better than expected GDP data in the US driving markets. The U.S. economy expanded 2.0% for the third quarter, up from 1.3% in the previous quarter and beating the forecasted 1.9% economic growth. The stronger than expected figures ignited demand for higher yielding assets and lured investors from the safe haven of the USD.
The GDP figures are one of the last bits of important economic data to be released before the US presidential election on the 6th November. With more than 20 million unemployed Americans and a burgeoning public deficit, the economy has become one of the main focal points of the campaign between Obama and Romney.
At the close of U.S. trading after a choppy trading session in the US, the Dow Jones Industrial Average ended the day up 0.03%, the S&P 500 index closed down 0.07%, whilst the Nasdaq Composite index finished Friday up 0.06%. Prior to the release of the GDP figures, stocks had fallen in anticipation of poor figures, with the actual figures catching the markets by surprise.
Leading Dow Jones Industrial Average performers included Microsoft which gained 1.18%, United Technologies, which closed up 1.16% and Intel which finished Friday up 1.15%. The Dow Jones Industrial Average’s worst performers included JPMorgan Chase falling 1.22%, the Bank of America closing down 1.19%, and Procter & Gamble, ending Friday down 0.91%.
The USD was mixed to down against most major currencies on Friday, most notably against the JPY, which was up 0.82% against the USD. Despite a gain of 0.22% against its Canadian counterpart, the greenback was down 0.26% against the commodity linked Aussie. The USD was up 0.09% against the GBP, but down 0.05% against the EUR.
After a strong trading week last week, binary options traders can expect a week of very much the same – high volatility and increased profit opportunities. Analysts are expecting the EUR/USD to rally back to 1.2800 over the week with much of the focus on Spain and the widening gap between Spain and Germany.
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