Forex Market Very Volatile Today
Trade of the Day
We have seen a lot of weakness when it has come to the Dow Jones in the past trading session. There was a lack of risk appetite when it came to the most traded stocks and indices. There has been a lot of volatility in the leading U.S. indexes in the past few trading sessions, as investors feel that there are many risks. The Dow may make a comeback in the days ahead.
Dollar very strong
Traders feel that now is the time to start going long on the dollar this morning. It is one of the strongest currencies, as there are a lack of assets to go long on at the moment. This is following the bearishness which we saw when it came to some of the leading stocks at the end of the previous trading week. Traders may continue buying into the dollar today, as there will not be so much economic data published from the leading economies.
EUR goes lower today
There is very little demand when it comes to the euro this morning. Investors have taken it upon themselves to go bearish on the euro, due to the fears over the state of the Eurozone. With Merkel blaming the previous Chancellor for the region’s problems, this does not put things in a good light. It is true that Germany has the strongest economy in the Eurozone. The biggest losses this Monday have been made versus the pound and the dollar.
Pound higher on all fronts
Traders have decided that it is time for them to start going long on the Japanese yen in the past few hours of trading. This is because of the fact that the pound is somewhat undervalued at the moment. This is after some of the heavy losses which it made versus its main peers during last week’s trading session. It is good to see that the pound has managed to make some impressive inroads into the euro and the dollar. This trend may continue as data is released form the leading economies.
Yen very weak
We are seeing a lot of weakness when speaking of the Japanese yen in the latest round of trading. Investors feel that they should sell the Japanese currency today after were see very big gains in Asian stocks. The trend of a weaker yen may continue in the hours ahead, so get ready for this possibility.
Equities slump on Friday
Traders took it upon themselves to go short on equities at the end of last week’s trading session. They were simply not in the mood to take risks, as there was so much fear in the markets. The fact is that there are mixed releases with regards to the U.S. economy. This may better explain the weakness which we saw in the latter stages of the previous trading weeks U.S. trading will be suspended today, so you will want to study the U.S. market very closely before opening your positions when trading continues on Tuesday.
Gold down by $4 today
There is a lot of weakness for the gold binary option today. It has slumped by $4, as investors just do not feel that it is worth it for them to go long on the commodity. Instead, they have decided to ditch it and put their money into the USD. It maybe that gold will continue sliding in the hours ahead due to the risks in the currency market at the moment. Therefore, be prepared for more losses.