Binary options traders have an exciting year behind. Surprise outcomes in 2016, such as BREXIT and Donald Trump’s victory caused huge volatility in financial markets. But the effects of these important events are still influencing prices of financial instruments, so traders cannot sit back. Instead, 2017 offers lucrative binary trading opportunities for investors who keep monitoring the news. What will be the top trading opportunities this year?
Speculate on Strengthening US Dollar
It continues to be a good idea for investors to buy the US Dollar or to buy options that bet on Dollar strengthening. The Fed raised interest rates at the end of 2016 and it plans to do the same in 2017. Furthermore, Donald Trump’s plans regarding lower taxation and higher public spending on infrastructure can be tremendously helpful for the US Dollar. Trump’s planned expansionary fiscal policy is likely to lead to a further increase in interest rates which will create relative strength for the USD especially against the Euro and the British Pound.
Buy Crude Oil
2016 brought a significant increase in the price of the oil: crude oil rallied over 111% from February to December due to OPEC and non-OPEC production cuts on the horizon. Oil producers want to lock in prices above $50 per barrel. The OPEC-driven rally might even speed up price growth and it can turn towards $60 a barrel in 2017. Hedge funds hold huge crude long positions on the expectation that production cuts will reduce excess stocks by the second half of 2017. Binary traders can also follow the hedge funds and buy call options on crude oil.
Speculate on Increasing S&P 500
The S&P 500 index gained strength last year. Although it fell13.3% in January 2016, the trend changed afterwards and it rose by over 26% from February. President-elect Trump plans to lower tax rates in his first 100 days, this will make a positive influence on earnings of companies and individuals. Their increased spending is supposed to stimulate economic activity, thus the growth prospects of entrepreneurs and increase the profitability of corporations. Trump’s policies are intended to help US companies grow. This process will raise stock prices at the end.
Speculate on Decreasing Euro
The Euro will face tremendous political uncertainty as Germany, the Netherlands and France head to polls in 2017. Worries about election outcomes in the key regions may decrease the exchange rate of the common European currency. Furthermore, the continued crisis in the Italian banking sector might have a negative impact on the Euro. The potential for difficult negotiations between the EU and the UK over Brexit can also spark Euro weakness. So, there are plenty of opportunities for Euro weakening that binary options traders can utilize.
Investor sentiment is mostly bullish now. However, traders have to keep in mind that sentiment can quickly turn bearish on negative news. Unforeseen events might drive big market swings. So, you need to monitor the market constantly, and go short in case