Gold Dives to the Lowest Level in 3 Years
Trade of the Day
Pair to continue declining
The EUR/USD pair has gone weaker during the current trading week. It is trading lower this morning by 0.23% at $1.3631. Traders have decided that now is the right time to go short on the EUR/USD currency pair, as it seems to not be offering traders high enough returns. As a result, traders are staying away from the currency pair today.
Much strength for the USD
There is a lot of strength for the U.S. dollar today. Traders are of the view that it is worth it for them to buy into the greenback at the moment. This is as it is offering them some very high returns. The GBP/USD pair is trading lower right now by 0.24% at $1.6334. The greenback has also made inroads into a number of its other main currency counterparts this Friday morning.
Euro turning the screw
There has been a lot of downward pressure on the European single currency this morning. Investors are of the view that the euro is undervalued to a certain extent. In early morning trading, the EUR/GBP was lower, but it is now a touch higher. This shows just how quickly the situation can change in the forex market each trading day. As a result, look to go long on the EUR/GBP cross in the coming hours of trading. The euro may also end up surging versus the Japanese yen in the latter hours of trading today.
Pound going lower yet again
We have seen a lot of weakness when speaking of the British pound during the current trading day. Investors feel that it is just not worth it for them to take big risks by going long on the GBP. Instead, they have done the exact opposite. You will want to look into selling the pound today order to make some high returns from the forex market. The GBP/USD pair is set to slide further.
Yen making big losses today
We are seeing a lot of weakness for the Japanese yen this morning. The yen has been showing a lack of direction recently. This comes amid the Nikkei sliding, along with other Asian indexes. There is just a lack of demand for Japanese assets at the moment, which has ended up pushing the Japanese currency a lot lower. This means you will want to stay away from the yen in the next few hours to minimize your losses.
American and Asian stocks hit
There has been a lack of strength when speaking of global stocks at the moment. Traders have a lack of risk appetite, which has driven them to other assets. This may be a reason why crude oil was able to surge yesterday and the greenback is a lot stronger this morning.
With U.S. stocks jumping on Wednesday, they made a bearish correction on Thursday.
The result of the weakness for U.S. equities has really hurt Asian stocks this morning. Investors fear that stocks could go lower yet gains in U.S. trading.
Gold going lower again
One of the weakest commodities this morning is gold. It was higher in early morning trading, buy has since declines. This is after following to its lowest level in 3 years yesterday. This shows that gold is an unreliable commodity at the moment. It seems to be acting negatively to the decision by the Fed to cut stimulus. Therefore, look for gold futures to make additional losses in the latter hours of trading.