Binary Trading: EUR/CHF, USD/JPY Options Forecast for Oct 6
The EUR has been steadily gaining in strength against the CHF since the middle of last week. It rose from a low of 1.2054 to close at 1.2106 on Friday. The EUR started gaining after the Swiss National Bank maintained its cap of 1.20 per euro and once again said that it will defend the level if necessary. Because of the attitude of the SNB it is safe to assume that the EUR/CHF pair won’t drop much. As a result a long term Call trade should be fairly safe.
From Thursday to Friday the USD/JPY pair rose from a low of 108.11 to close at 109.78 on Friday. The pair is now approaching six year peaks after data showed that the US economy added more jobs than expected last month. The Bank of Japan looks likely to stick to a loose monetary policy amid concerns over inflation and growth. With the Federal Reserve due to publish the minutes of its latest policy meeting, it wouldn’t be surprising to see this pair remain stable until mid-week as investors anticipate the minutes.