Euro Starts to Weaken on Growth Concerns!
Greenback in high demand today
The greenback is in very high demand today. The U.S. dollar was very weak earlier on as traders had a lot of risk appetite. However, the USD has started to gain ground due to traders being worried about the global economic growth rate. With the advances made for U.S. stocks yesterday and the positive data from the nation, this has led to a lot more confidence for the greenback.
Euro maintains gains vs. the pound
The euro has been able to maintain its gains versus the pound and the yen today. However, it has slumped versus the dollar. The EUR/GBP cross is higher today by 0.2% at 85.94 pence. Traders are taking some risks today after there was a rally for U.S. stocks yesterday. It will be interesting to see what effect today’s stock market slump will have on the euro.
Pound is lower versus dollar and euro
There is a lot of weakness today when speaking of the British pound. Traders do not feel it is the right time to buy into the British currency, as it has not been providing enough returns. The GBP/USD pair is trading much lower today by 0.36% at $1.5307. Traders just feel that the pound is undervalued, and it is only natural to sell the British currency. This is why traders will need to be cautious in the next few hours of trading if they wish to make some high returns later on this Wednesday.
JPY much lower vs. its peers
The yen has lost a lot of ground versus its peers during the current trading session. This seems to be a normal trend, as the Bank of Japan has gone out of its way to weaken the nation’s currency and boost the nation’s exports. Moreover, the G20 did not criticize the moves taken by the Japanese government and BOJ. This is why it is expected that the JPY will continue diving into the abyss.
U.S. stocks given big boost
The top stocks on Wall Street were given a big boost during yesterday’s trading session. Investors felt it was worth it for them to go bullish, as there is a feeling that U.S. equities have been largely oversold during recent trading sessions. What really played into investors’ thinking was the positive housing data.
The S&P 500 climbed 1.43% to 1,574.57. The Dow Jones jumped 1.08% to 14,756.78.
Coca Cola climbed 5.69% to $42.37. Yahoo fell 0.79% to $23.79. Blackberry advanced 1.53% to $13.92 yesterday afternoon.
The gold binary option falls yet again
The gold binary option slipped for yet another trading session yesterday. Gold futures are lower today by $6.15 at $1,381.25. The fact is that gold futures were previously overvalued. As a result, commodity traders decided to unwind their long positions. There has been a fall of about 14 or 15% in the past several days of trading when it has come to the gold binary option. Traders do not feel it is worth putting their funds into the commodity, especially as the dollar is showing a certain amount of strength in the past few hours of trading.
Trade of the Day
Dow may climb for second day
The Dow Jones may climb for the second straight trading day. This is after the index surged yesterday. There is a lot of bullishness with regards to U.S. stocks and indices as the U.S. published a string of positive economic data during yesterday’s trading session. Call options are the way to go this Wednesday.