With the US Federal Reserve injecting $600 billion dollars into the economy, binary trading is watching intently.
The quantitative easing initiative, dubbed QE2 is designed to do just what it says on the tin and ease the US economy. This is by no means drastic or erratic action, rather it can be considered as a booster aiming to improve the slowing economy and ideally speed up the pace of US employment recovery.
Binary trading places trades on the underlying movement of the market and as such will be paying close attention to the impact of quantitative easing. Initial indicators have suggested that markets have been slow to react to this latest piece of US news, enhancing growing speculation surrounding just how successful the measures will be.
Binary traders are likely to be focusing on factors such as the non-farm payroll figures and the latest consumer spending reports because the value of these reports may now be intensified as a comparative to the overall success of quantitative easing and consequently underlying market movements. If the easing overrides the danger of asset bubbles and the fragile nature of market confidence it may be just what the US economy needs. However as with binary options the success of this initiative may move two ways.
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