S&P 500 Dips Following Iran Deal
The U.S. dollar is one of the weakest currencies this morning. This is after it was very strong yesterday morning. The EUR/USD currency pair is trading higher at the moment by 0.14 percent at the $1.3536 price level. The USD has also fallen notably versus the CHF. Traders foresee the greenback making additional losses in the latter hours of trading.
The yen is being boosted this morning by the much weaker Nikkei. This is after the Japanese currency dipped during the previous three trading sessions. Investors are of the view that it is worth it for them to take some big risks today. With BOJ policymakers stating that they see risks with the Japanese economy, this has actually lent the yen a helping hand this morning. The USD/JPY pair is lower by 0.11 percent at 101.57 yen.
We did not see much strength for the Australian dollar in previous trading sessions. The AUD has managed to make a bullish upturn this Tuesday morning. The AUD/USD pair is trading higher this morning by 0.3 percent at 91.90 U.S. cents. The Aussie has also managed to make inroads into a number of its other main peers today. With currencies such as the euro under pressure, traders feel that buying into the AUD is the right move.
There was a lot of movement when it came to the S&P 500 Index yesterday. It ended the day lower following the agreement with Iran. However, other leading indexes were able to climb notably.
The bigger picture showed that traders decided to buy into stocks, as there is a lot of optimism in the financial markets at the moment. With there being fewer fears over Iran’s nuclear plan for the time being, traders have decided to take some big risks.
The S&P 500 Index dipped yesterday by 0.13 percent to 1,802.48. The Dow Jones Industrial Average made gains of 0.05 percent to 16,072.54.
Alcoa climbed 0.89 percent to $9.59. Microsoft jumped 0.19 percent to $37.64.
It is good to see that the crude oil binary option is trading higher this morning by 46 cents at the $94.55 price level. This is after the commodity dipped 75 cents during yesterday’s trading session. Monday’s losses were owed to the euphoria following the nuclear deal with Iran. With there being more supply in the market, traders took the chance to sell the black gold. With crude supplies shrinking for the first time in more than two month, price may surge today.
We saw some weakness when it came to gold during Monday’s trading session. However, many of its losses were cut in late trading. Gold futures have rebounded this morning by $11.45 to the $1,253.05 level. The strength today comes on the much weaker dollar and increased demand for the bullion from China. The reality is that traders still view the commodity as a touch undervalued, which is helping push it higher in the latest round of trading. Call options are the popular trade today.
It was unfortunate to see the S&P 500 Index hit yesterday. It seems traders were being safe following the record gains the highly traded American index made last week. The fact is that there is a lot of economic data driving the markets and the S&P 500 itself at the moment. Therefore, you will need to understand how to invest carefully. It may be that the S&P 500 will make a comeback today. With this in mind, look to go long during the U.S. session.