2016 Binary Forex Trading: Are the Bulls Back in Town?

So far, the beginning of 2016 has proven to be one of the worst starts to a financial year in recent memory. However, last week showed at least a glimmer of hope. Sharply rebounding oil prices (at one time on the order of 20 per cent) saw equally steep market gains. Many binary trading investors breathed a slight sigh of relief after such a volatile opening.

It should still be noted that analysts are rightfully wary in regards to whether or not this short-term rally will translate into a long-term trend in the coming months.

The Oil-Forex Relationship

Perhaps the most striking news that was observed towards the latter half of last week revolved around the resurgence of oil by up to 20 per cent before losing ground. While it is indeed true that such gains cannot be ignored, the fact of the matter is that the price per barrel has still taken massive hits. Even a modest gain is a mere drop in the bucket.

With oil currently trading at just over $30 dollars a barrel (as of today’s date), we still have a long way to go. Recent news such as the expected contraction within the Russian economy underpins how these prices are serving to deflate hopes of a long-term fiscal rally.

The Federal Reserve

Since the Fed had decided to raise its interest rates in December, the dollar has gained in strength when compared to the euro and the pound. All eyes are now turning to the decisions that the ECB will take in March.

Any type of stimulus package is likely to lessen the impact of the Federal Reserve. Still, the dollar is not likely to weaken after continued positive earnings results out of the United States. Binary trading professionals are therefore right to take a more cautious stance.

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Tuesday, January 26th, 2016 USA, news

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