Dow Jones Showing its Strength
Trade of the Day
Dow Jones gaining ground
The Dow Jones has really been one of the hottest indexes in the past several trading weeks. With the war with Syria being very slim, traders have taken the opportunity to go long on the Dow and other leading U.S. indices. The Dow Jones seems to be very stable and reliable. This has turned out to give investors a lot of confidence while trading the financial markets. It would be no surprise if the Dow Jones builds on its gains in the latter hours of trading.
Dollar weak today
There seems to be a lot of weakness for the U.S. dollar today. Traders are of the view that the dollar is overvalued. This has led traders to ditch the U.S. currency. But looking between the lines, it can be said that the U.S. stock market rally on Monday has given traders much confidence this morning. This confidence has resulted in investors ditching the U.S. currency. Instead, they have opted for currencies which are higher yielding, and carry with them much greater risks. The weakness for the greenback may continue.
Euro gaining ground
It is good to see that the euro has managed to make some very impressive gains in recent trading sessions. This is as investors have so much confidence in the financial markets. The biggest gains for the euro have been made versus the pound and the dollar. It is important to note that the euro was weaker just 2 hours ago. This is evidence that shows how the situation can change very quickly.
Pound starting to weaken
The pound started the trading session much stronger. However, it has stated to weaken in the past hour or so. The boost in confidence in the markets as of late has started to shake the British currency. This is even though there are signs that the British economy is improving. This shows just how the situation in the markets can change so quickly. It may be that the pound will make big losses versus the euro this afternoon.
JPY going lower today
The yen is very weak this morning, as traders have ditched currencies known to be havens. With the intent of taking some very big risks, this has really hurt the Japanese currency this morning. The biggest losses for the yen have been against the euro and the dollar. The yen may side further as the trading day passes by.
Stocks in demand
There is reasonable demand when speaking of U.S. stocks currently. We saw a rally on Monday, as the news of Summers steeping down as frontrunner as head of the Fed made traders very happy. They want further stimulus to boost the U.S. economy. With Summers out of the way, this seems more likely.
There are still a number of other factors which will be key in driving the top stocks on Wall Street. Therefore, you will want to be quite cautious while trading stocks and indices in the hours ahead.
Gold reasonable strong
It is good to see that gold has been able to build on its gains in the past hour or so. The dollar is very weak, which has turned out to lend the gold binary option a lot of strength. There are also various other factors driving gold futures this Tuesday morning. The reality is that gold is somewhat undervalued. Therefore, traders have taken the chance to buy into the gold binary option this Monday. It may continue going higher later on today.