Weak U.S. Manufacturing Data Hurts U.S. Stocks

Weak U.S. Manufacturing Data Hurts U.S. Stocks

2.10.14

Currencies

USD

We have ended up seeing a lot of weakness for U.S. stocks in the most recent trading. This is after the string of gains which the greenback has been able to cap. It is important to take into account that the USD has been able to surge since June. What really hurt the U.S. dollar has been the very weak manufacturing data. Therefore, investors will want to be very cautious while trading the greenback today. There is reason to also have confidence in the greenback as the moment after there was very positive employment data that came out of the U.S. economy yesterday. This means the upcoming data in the hours head will be key in driving the greenback.

EUR

One of the most volatile currencies at the moment is the European single currency. The EUR/USD forex binary option has jumped 0.7 percent during Thursday morning trading. Investors have decided that it is the time for them to go long on the euro after the weakness which we have seen in previous trading weaker for the EUR. There will be a string of economic data published from the developed economies, so make sure to go long on the EUR/USD now.

AUD

It has been great to see that there is so much confidence in the Aussie. What really ended up helping the AUD in the latest round of trading were officials in Australia easing property restrictions. This was a much needed order, as there are fears over the slowing Chinese growth. The AUD/USD forex binary option is trading higher at the moment by a whopping 0.5 percent at the 87.81 U.S. cents level. Traders are hopeful that there will be positive economic data today from the Australian economy in order to lend the Aussie a helping hand.

Stocks/Indices

It is unfortunate to say that U.S. stocks tumbled for yet another trading session on Wednesday. It seems that the U.S. manufacturing data led traders to ditch top equities on Wall Street.

The Dow Jones Industrial Average made losses of 1.4 percent to the 16,804.71 level. The S&P 500 Index made losses of 1.32 percent to 1,956.16.

Bank of America Corp. made losses of 1.35 percent to the $16.82 level. Facebook Inc. slumped 3.15 percent to the $76.55 level. Apple Inc. fell 1.56 percent to $99.18. Intel Corp. dipped 2.38 percent to $33.99.

Traders should make sure to follow all of the economic data in the hours ahead; as it will be crucial in determining how strong U.S. equities will be during the U.S. session. There may actually be a bullish comeback once today’s trading session gets going.

Commodities

Crude Oil

Crude oil futures are trading lower this morning by a massive $1.29 at the $89.44 level. The commodity is basically trading at a 17-month low. This has come on supplies in the U.S. climbing notably. With growth slowing in China and the Eurozone, then this may continue to be key in driving the black gold lower as the trading day drags on.

Gold

We are seeing hold go lower this morning by $1.20, as traders just do not feel that it is the time for them to take risks with the yellow metal.  The reality is that traders just do not think it is the time for them to put their money into commodity at the moment. Therefore, staying on the sidelines may be the right thing to do.

Wild Card

Crude Oil

Traders may want to open daily Put options to make maximum returns from the financial markets this afternoon.