Asian Stocks Cap Best Weekly Gains since March
The pound has seen its worst losing streak since 2010 on rising gilts. In fact, the sterling tumbled for the sixth straight trading week versus the dollar on investors scaling back their forecast for the Bank of England’s first interest rate rise since 2007. In addition, sterling tumbled during the latter part of last week’s trading session. This comes even though a report showed that U.K. GDP grew 0.8 percent in the second quarter, in line with forecasts. Experts state that it is more likely that U.K. rates will be raised in the first quarter of 2015 from the fourth quarter of 2014.
It was great to see the loonie touch its highest level in two weeks versus the greenback. This has come on a corrected government report showing that Canada added more jobs than forecast during the month of July, decreasing the concern that economic growth is faltering. In addition, the unemployment rate fell from 7.1 percent to the 7.0 percent level. The good news is that we saw positive reaction to an upward correction to employment figures. The thing is that we are seeing risky assets underperform. This is actually causing the loonie to go much higher versus its main peers.
The Japanese yen has been one of the most bullish currencies as of late. The yen was able to gain of haven demand for much of last week’s trading session. This comes as Ukraine destroyed some Russian convoys which crossed the border. Moreover, a number of emerging market currencies dipped amid the global wars. The yen did make some very important gains versus the dollar, and more of this may be the case in the week ahead.
There was a lot of movement for Asian stocks during the week that just passed. Actually, Asian equities were able to surge to cap the best week of gains since the month of March. This came as investors weighed earnings and the developments in Ukraine.
The MSCI Asia Pacific Index and a number of other regional indexes were expected to record some very important gains. This is good in hosing that traders ae got a lot of confidence in Far Eastern stocks at the moment.
The negative news is that data showed Japan’s economy contracted the most since 2011. In addition, Chinese growth came out much worse than expected, so be cautious while trading in the week ahead.
It was great to see that crude oil as able to surge in the latter part of last week’s trading session. The commodity advanced after Ukraine said that convoys entered its territory. The thing is that there is no long term ceasefire with Israel and Hamas, which has ended up putting upward pressure on the commodity. Look to open weekly Call options on Monday morning.
It was unfortunate to see that the gold binary option took a hit at the end of the previous trading week. Investors just did not feel that it was worth it for them to put their money into the yellow metal. On Friday, we saw gold futures slides the most since the beginning of this month on investors warning in various countries such as the U.S. and China. Traders feel that more losses may be the cards in the hours ahead.
For those of you who have been trading the GBP/USD forex binary option will know just how much volatility there has been. Look to go long on the pair during the upcoming trading week.