Traders Hope for Additional Gains
There is a lot of weakness this Monday following the advances made by equities on Wall Street during Friday’s trading session. Traders have been encouraged to take some big risks when it comes to the forex market this morning. With the demand for havens being much lower, this has not lent the greenback a helping hand. The GBP/USD pair is trading higher as of now by 0.09 percent at $1.6134.
The European single currency is mostly lower this morning. Investors are of the view that it is not worth it to take risks when it comes to the euro. This is because the debt crisis in the region has not yet been solved. This has led the euro to fall versus the pound. It is actually starting to make a comeback versus the U.S. dollar. Look for the EUR/USD pair to surge this afternoon.
One of the most bullish currencies this morning is the Australian dollar. Investors are of the view that the time is right to go long on the Aussie. This is because the nation’s economy is relatively strong when compared to other global economies. Also, the nation’s largest trading partner (China) has unveiled the biggest economic expansion plan in two decades. The AUD/USD pair is higher this Monday morning by 0.43 percent at the 94.12 U.S. cents level.
There have been very impressive gains on Wall Street in recent trading days. In fact, global stocks have really been in high demand due to the positive economic figures which have been published from the global economy.
The Dow Jones Industrial Average advanced 85.48 point, or 0.54 percent, to 15,961.70. The Nasdaq 100 Index climbed 0.22 percent to 3,422.58.
Cisco Systems jumped 0.8 percent to $21.53. Facebook climbed 0.04 percent to $49.01.
There will be a lot of data from the leading economies today, so get prepared to open you positions if you are interested in making high returns from the financial markets.
It was good to see that the crude oil binary was able to cap some very important gains during Friday’s trading session. This was after the commodity was sold off in previous trading days. However, the black gold is trading lower this Monday morning by 33 cents at the $94.16 level. Traders feel that it is a good idea for them to ditch the commodity this morning, as an Iran deal looms. If war with Iran is averted, then this could turn out to push crude prices a lot lower. Therefore, be prepared for this possibility.
There was a good amount of upward pressure towards the end of last week. However, the gold binary option is weaker this morning by $2.70 at the $1,284.70 price level. Traders feel that it is worth it for them to ditch the yellow metal today as it is not providing them high enough returns. The fact of the matter is that the majority of metals are lower this morning. Investors just do not have appetite when it comes to the commodity market, so expect gold futures to decline further.
The S&P 500 went higher on Friday, just as we said it would. The reality is that there is a lot of risk appetite in the financial markets at the moment. The U.S. market also seems to be leading the pack. All eyes each trading day seem to be on the U.S. economy. Traders are hoping that the Dow Jones will be able to extend its gains this afternoon.