Low volatility of the European markets

Forex Binary trading, EUThe latest Forex trading news is centered around the relatively low volatility of the European markets this past week. With no major events in the economic calendar and few developments in European politics, trading has been light although we have finally seen a slight recorrection of the Euro’s performance against the value of the dollar. Some see this as a sign of an important top and therefore possibly a resistance level while others are cautious as they observe that the Euro is still impressively above the multi-year low seen in July.

Spain’s 2013 budget

One major factor which will not only play directly into Forex trading but affect overall market sentiment is the impending announcement for Spain’s 2013 budget. Most expect further austerity measures to be put in place; possibly causing yet more political and civil unrest in the country. Furthermore, analysts are beginning to agree that any further fiscal cuts represent an inevitable prelude before Spain formally requests a bailout from the ECB. This, of course, brings back familiar memories of Greece’s funding only on a much larger scale. Should this likelihood indeed turn out to be fact, many traders are bracing for a major pullback in the value of the Euro. However, improvements in bond yields in the European market signal that any formal bailout request may still be considerably far off and that the Spanish Prime Minister Rajoy is seeking more time to help rectify his country’s finances.

More forex traders than usual now looking at binary options

Many Forex traders are considering utilising binary options as a safer alternative due to their “all or none” nature. Considering these options are mainly web-based, traders worldwide have the added advantage of real-time reactions to any sudden or perceived impending currency movements. Nonetheless, as the Spanish budget announcement looms, lower trading volume and less volatility can be expected to continue for the near term.

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Tuesday, September 25th, 2012 europe

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