The week ahead should see opportunities in the following underlying assets. Below are the four assets that you should watch in the week ahead.
Trading opportunity #1 – Macy’s Stock Slides Big League
As a trader, there isn’t a whole lot to be excited about when it comes to Macy’s stock. This iconic American brand is in the midst of restructuring operations by way of divesting and cutbacks. The sheer cost of maintaining operations is too great to bear, especially with the fierce competition coming from online retailers. As such, it comes as no surprise that Macy’s announced that it will be shuttering an additional 100 stores over the next couple of years. The company will be focusing on e-commerce to trim the fat and boost profits.
Digital sales are vital to the success of Macy’s, and binary options traders will do well to wait for the stock to bottom out, buy-in and then wait for the inevitable reversal once e-commerce gets going. Macy’s has significant capital available to become a power player in the e-commerce market. However, if you’re thinking of going short on Macy’s, you will also find similar reasons to go short on JC Penney’s, Kohl’s, Nordstrom’s, Target, and other land-based retailers that are struggling against the online competition.
Trading opportunity #2 – the GBP/USD pair retreats
The current exchange rate of the GBP/USD pair is 1.2886. Over the past three days, the pair has retreated from close to 1.30 to its current level, amid a strengthening of the USD. The reason for this downward pressure on the GBP is the Bank of England. After the BOE decided to maintain its monetary policy position – no rate hike and no change to stimulus – pound sellers piled onto the sterling.
This sent the cable to fresh lows of 1.2870. The critical 1.2900 support level was breached, and the slide continued. The BOE has now upped its inflation forecast for the year by 0.3% to 2.7%. The trend index for the currency pair for the year to date remains bullish however. As a binary options currency trader, the short-term trend is bearish as the 7-1 vote by Monetary Policy Committee members did not ignite confidence in an imminent reversal in monetary policy.
