Pound Makes Vital Comeback
Thursday saw yet another action-packed day when speaking of the greenback. The thing is that the U.S. dollar was able to gain for a fourth straight trading day amid speculation that the Federal Reserve will increase interest rates by the middle of 2015. The dollar made impressive gains versus both bitcoin and the loonie. It is true that the USD did not jump versus every single counter currency, but it was able to show its resilience. When speaking of declines versus the pound, this may be owed more to the GBP/USD pair being oversold. Traders should possibly look into going short on the dollar this Friday morning, as the greenback’s gains may have been overdone.
The CAD made very big declines versus its main currency counterparts during Thursday’s trading session. In fact, it traded at its lowest rate in nearly four months versus the U.S. dollar. The reason why traders decided that it was the time for them to ditch the loonie was due to crude prices trading near their lowest level in nearly a year at the commencement of Thursday’s session. Traders fear that there could be further losses for the CAD as Friday’s session drags on, so be very cautious while trading.
There was a lot of strength when speaking of the pound following the gains which it was able to cap on Wednesday. However, this is not enough, and we may only see a real comeback for the British currency f there is a no vote on September 18 with regards to Scotland’s vote on leaving the U.K. Among the reasons why the cable was able to jump on Thursday was due to the strength of the British economy. The fact is that the economy has continued to improve as each month passed by. Therefore, more gains may be on the cards for the GBP today.
We saw U.S. stocks fluctuate on Thursday following the decisive gains which we witnessed on Wednesday. It seems that the rebound in oil offset concerns over escalating geopolitical tension.
The S&P 500 Index added 0.09 percent to the 1,997.45 level. The Dow Jones Industrial Average dipped 0.12 percent to 17,049.00.
Bank of America Corp. advanced 1.28 percent to the rate of $16.57. Apple Inc. rose 0.43 percent to $101.43. Twitter Inc. tumbled 0.51 percent to $52.64.
The thing is that the S&P 500 is still down 0.6 percent for the current trading week. This is why investors are hoping that there will be big gains for the key U.S. index once Friday’s session commences. In the meantime try and work out which time frame you want to select your expiry time.
It was great to see the crude oil binary option surge by a whopping $1.50 or so during yesterday’s trading session. Investors just felt that it was worth it for them to go long on the black gold after the very big losses which the commodity made the day before. Expect there to be additional gains when speaking of crude oil futures in the coming hours.
Gold futures delinked notably in the past few trading days. In fact, on Thursday the yellow metal fell to its lowest level in seven months. This has come on the forecast that the Federal Reserve will raise interest rates sooner than predicted initially. This is due to the strength of the American economy.
With crude oil surge by around $1.50, look for the commodity to build on its gains in the hours ahead.