U.S. Stocks Fall on China Woes!
USD makes a downturn
The greenback made some very big advances during yesterday’s trading session on safe-haven buying. The biggest gains were made against risky currencies such as the euro. However, the dollar has lost a lot of value in the latest round of trading. The reason for the weakness today is that the U.S. currency is very much overvalued. The EUR/USD forex pair is trading higher today by 0.33% at the $1.3080 level.
Euro making a comeback
The euro has made a comeback this Tuesday morning. This is after it made some very heavy losses during yesterday’s trading session. Investors felt that the European single currency was oversold. This is why they feel it is the right move to go bullish in the latest round of trading. The EUR/GBP cross is higher as of now by 0.15% at 85.42 pence. The euro is also higher versus its other main peers.
Pound surges versus the dollar
The British pound has surged versus the U.S. dollar today. The GBP/USD pair is trading higher at the moment by 0.16% at $1.5309. Traders have decided to buy into the pair, as it has been offering traders some very high returns in the latest round of trading. The pound also made inroads into the yen, as there is a lack of demand for haven currencies today. This is following the big advances which they made during Monday’s trading session. Do not be surprised if the GBP/USD currency pair continues to soar in the coming hours of trading today.
Japanese currency much weaker
The Japanese currency is trading much weaker today versus its main currency counterparts. This is following the advances which it made yesterday. The main reasons why the yen is so weak at the moment, is because it is undervalued. Traders seem to be unwinding their long positions and putting their money into alternative currencies. We may see this trend continue. As a result, you may want to start selling.
U.S. stocks make very big losses
The S&P 500 fell the most since November on slowing Chinese growth. We saw a lot of weakness during yesterday’s trading session. The fact is that China is among the fastest growing economies, so the unexpected weak data sent shockwaves through the financial markets.
The Dow Jones tumbled 265.86 points, or 1.79%, to 14,599.20. The Nasdaq Composite Index slumped 78.46 points, or 2.38%, to 3,216.49.
The losses which we saw in Asian stocks may have a negative impact on U.S. stocks later this Tuesday.
Gold binary option very week
The gold binary option is very weak at the moment. This comes as traders feel that the commodity has not been offering them high enough returns. The greenback has been very strong in previous trading days, which has put a lot of downward pressure on gold. Therefore, traders feel that it may be worth putting their funds into alternative assets. The commodity is actually trading higher this morning by $14.55 at $1,375.65. The gains may be extended later on, as there is a return of risk appetite when it comes to commodities in the latest round of trading today.
Trade of the Day
Buy into the commodity
Traders have decided to purchase Call options in the gold binary option today, as there is a lot of technical support for the commodity. The dollar is showing a lot of weakness this morning, which is pushing traders into gold. Therefore, traders may want to get in on the action by going long on the gold binary option.