Binary Options News : September 6, 2012

Important day of trading ahead

Low volume Asian trading overnight showed that the markets are awaiting the results of key meetings and data being held today.

Asia

Overnight saw mixed trading for Asian stocks with Hong Kong’s Hang Seng Index fall 0.18%, Australia’s S&P/ASX200 increase 0.71%, whilst Japan’s Nikkei 225 Index fell 0.28%. Helping push the Australian index up was a surprise the Australian unemployment rate last month; falling to a seasonally adjusted 5.1%, from 5.2% in the preceding month and after analysts had predicted the unemployment rate to increase to 5.3% last month. This provided a welcome boost to the Aussie which suffered big losses after the previous day’s news that Australia’s economic growth rate slowed in the second quarter after a fall in global demand for its resources and weak domestic consumption. The AUD dollar increased against 15 of its 16 major peers, after reaching its lowest level against the USD in almost two months yesterday. The AUD/USD was up 0.28% at time of writing, trading at 1.0220.

ECB

The focus for many investors will be firmly on the ECB meeting later in the afternoon. It is expected that the ECB is to launch ‘unlimited, sterilized’ bond purchases, giving the monetary authority the ability to purchase national debt via government bonds carrying maturities of up to three years after being purchased. ECB President Mario Draghi favours unlimited purchases of government debt using money already in the system as opposed to printing money favoured by the Fed.

There is also an interest rate decision in the EU as well as the UK and Economists are split over whether ECB policy makers will lower the benchmark interest rate to a new record low. The UK is expected to keep rates unchanged.

Today’s Outlook

The key ECB meeting today is complemented by the release of the  jobless and Nonfarm employment change figures in the US making the day a volatile one with plenty of profit opportunities.

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