USD currency pairs are some of the most commonly traded currency pairs among binary options, and for good reason. At the end of the day, the United States economy is the world's strongest, and the USD is the world's reserve currency. As a result, high demand for the currency leads to incredible volatility and many opportunities. Nonetheless, if you're not already watching the currency, you may want to start. At the moment, there are two big stories that could cause drastic movement, leading to opportunities for binary options traders. Below, we'll talk about both of those stories and what binary options traders should be watching ahead.

The First Story That Could Lead To Big Movement In The USD

The first story that could lead to incredible volatility in the USD is Donald Trump's win as the President-elect of the United States. At the end of the day, any time a new President transitions into office, changes will be made. Ultimately, these changes have a profound affect on the United States economy. Since the values of currencies are largely dictated by the strength of the economies they represent, this could mean big movement in the USD ahead.

I will say, since Donald Trump's election, things have gotten more and more interesting. His win sent US markets on a Trump-fueled rally. Not to mention, he is changing the game when it comes to appointing people to key offices. At the moment, many of the people he's contacting for the positions in the Treasury, Department of Education, and more, are multi-millionaire or even billionaire business owners. As a result, many people have an expectation that Trump's presidency will help to fuel economic growth in the United States.

Federal Reserve Interest Rate

Another story that has the potential to cause real movement in the USD is the Federal Reserve's interest rate plans. Ultimately, the Federal Reserve's interest rate plays a major role in the value of the USD. When interest rises or falls, demand follows suit. So, if the Fed increases its interest rate, chances are that the USD will head up in value. Adversely, if they keep it the same, we could see the exact opposite.

For some time now, the Fed has been planning on an interest rate increase. In fact, back in December of 2015, the central bank increased its interest rate from a record low 0.25% to 0.50%. In doing so, the Federal Reserve said that this was just the first of many small rate increases to come. In fact, the Fed planned on increasing its rate between 2 and 4 times in the year 2016.

Unfortunately, throughout the year, economic concerns have been a bit of a hot topic. Due to these economic concerns, the Fed hasn't been able to move forward with even a single rate increase. However, for several months now, economic conditions have been improving. Now, job numbers are impressive and the unemployment rate is back to where it was before the 2008 financial crisis. So, chances are that an interest rate hike will be coming down the line soon. In fact, many believe that the Fed will increase its rate in December.

What Binary Options Traders Should Be Watching Ahead

Moving forward, binary options traders should be keeping an incredibly close eye on both of the stories mentioned above. At the end of the day, the USD is likely to see some strong movement ahead. By watching what Donald Trump does as he transitions into the Oval Office and whether or not the Fed will increase its interest rate, you'll get a good gauge of which way the USD is likely headed moving forward.