Yen Slides on Iran Deal
There is much demand for the U.S. dollar in the latest round of trading. This is following the losses which it made during last week’s trading session. It seems that the bullish comeback which we saw for American stocks on Friday has increased the demand for the greenback. The most important gains for the dollar this dollar this morning have been capped versus the pound and the Aussie.
There was a lot of strength for the euro at the end of last week. However, the single currency is trading lower versus the majority of its major currency counterparts. The euro’s biggest losses as of now are versus the pound and the U.S. dollar. This was after the euro surging notably during the latter half of last week. The EUR/USD currency pair is trading lower by 0.1 percent at $1.3542.
We are seeing a lot of weakness for the yen this morning. This comes after the latest Iran deal. In fact, the yen recently touched its lowest level in six months versus the dollar. It seems the deal with Iran has dampened the demand for havens such as the Japanese yen. Moreover, the yen slipped to its lowest level in four years recently prior to a report which is set to show that Japan’s inflation accelerated in October.
It was great to see that there was a lot of confidence in the financial markets during Friday’s trading session. This ended up boosting stocks and indices and Wall Street.
The Dow Jones Industrial Average climbed 54.78 points, or 0.34 percent, to 16,064.77. The Nasdaq Composite Index jumped 0.57 percent to the 3,991.65 level.
Citigroup made gains of 1.31 percent to $52.41. Pfizer rose 0.47 percent to $32.12. JPMorgan Chase & Co. advanced 0.42 percent to $57.46.
It was great to see that there was so much confidence in the market towards the end of the previous trading week. Investors may decide to go long yet again once the U.S. market opens in the hours ahead.
There were some very big losses for the crude oil binary option on Friday. Moreover, the black gold is lower this Monday morning by $1.31 at the $93.53 level. There are numerous reasons why we are seeing much weakness for the black gold this morning. One of them is the strong dollar, which is important as crude is price in USDs. The main factors are the latest Iran deal. With the rise on oil supplies, this may push crude prices even lower.
There is a lack of demand for haven assets this morning. This is after there was a deal with regards to Iran’s nuclear program. Traders do not think that it is the right time for them to put their money into gold. As a result, many investors have taken it upon themselves to open Put options in the metal in the latest trading. The result has been gold futures sliding more than $13 today to the $1,230.85 level. Expect further losses as the trading day unfolds.
One of the most traded commodities at the moment is crude oil. Traders are of the view that the time has come to sell the commodity. This is because there are simply so many factors driving down the leading commodities at the moment. As long as the dollar is strong, this is set to push oil prices lower. Trades will want to follow all of the developments with regards to Iran today. This will be key in driving crude prices today.