Yen Slides from 2-Month High versus Dollar
The U.S. dollar was rather mixed since the middle of yesterday’s trading session. Investors felt that there were a lot of opportunities when it came to the American currency. It did decline against the South African rand and Turkish lira, as the gains against emerging market currencies were overdone. Therefore, traders decided to unwind their long positions in the USD in this respect. On the other hand, the dollar was able to surge versus the Swiss franc and euro during yesterday’s trading session.
The Japanese yen did hit the highest level versus the greenback in more than two months over a day ago on its safe-haven status. Moreover, traders felt that the yen was undervalued, leading them to buy into the Japanese currency. However, the yen has declined from its highs, as traders had a lot of risk appetite in afternoon trading yesterday. This has led them to ditch havens and take big risks.
Since the Reserve Bank of Australia’s decision to keep rates unchanged at its latest meeting, this has resulted in the Aussie surging against the greenback and a number of its other main peers. All of this comes after the AUD was one of the weakest currencies in previous trading weeks. This just shows how quickly the situation in the forex market can change each trading day. The AUD/USD pair may continue to build on its gains today.
U.S. stocks rebounded yesterday following making the biggest losses since June. There were several reasons for the gains. One of them being that the recent weakness which we saw for American equities were overdone. Therefore, it was a relief to see the bullish comeback. Another key reason for the comeback yesterday was that earnings for the top U.S. companies coming out better than was forecasted.
The Dow Jones Industrial Average climbed 0.5 percent to 15,443.51. The S&P 500 dipped 0.8 percent to the 1,755.12 level.
There is expected to be additional gains in the hours ahead in the scenario that economic data ends up to be positive.
Crude oil futures managed to make some important gains during yesterday’s trading session. In fact, the crude oil binary option had been trading higher since the beginning of Tuesday’s trading session, as investors felt that the previous losses which we saw for the energy were exaggerated. Moreover, there was a very important comeback on Wall Street which gave traders the additional confidence to go long. Therefore, the gains which crude oil futures have been able to make recently are not a surprise. A weaker dollar is needed today in order to drive crude even higher than its current level.
The gold binary option was lower for a lot of yesterday’s trading session, but did manage to cut the losses in the latter hours of trading. Investors came to realize that there were trading opportunities in the yellow metal. This was a key reason in the bullish comeback. Also, it seems that the losses we have seen as of late for gold were not natural, and further gains are likely later.
The good news is that the AUD/USD forex binary option has been able to cap some very important gains in the previous day of trading. Investors took the opportunity to go long on the AUD/USD due to the ability to make some very higher returns. Moreover, the Aussie gained due to rates in Australia being kept unchanged. Look to go long on The AUD/USD pair in the next few hours of trading.