Euro Gains the Most in 7 Months
The European single currency has been by far the weakest currency in recent trading weeks. However, the euro was able to climb the most in seven months versus its peers yesterday. This has come as the ECB failed to provide concrete details about their plan to buy debt. Therefore, investors have come to the conclusion that the European leaders will not do what is needed to weaken the currency further. The euro jumped as much as 0.6 percent versus the dollar yesterday. This came after it touched the lowest level since September 2012. This shows just how quickly the situation can change in the forex market. Traders are hoping for additional gains for the euro later today.
The pound sterling got hit hard in recent trading sessions. It fell versus the dollar for the seventh straight trading day yesterday. This came as a key official from the BOE stated that the U.K. economic recovery may not be strong enough to produce an interest rate rise. In addition, the sterling made some big losses versus the euro yesterday. However, it is important to take into account that the pound has climbed notably versus the common currency in the previous six months.
The yen saw its biggest decline in 20 months during recent trading session. This has come as the BOJ has gone on with very aggressive QE policies in the past two years. There are now fears that such policies will hurt companies and consumers. The good news is that t was able to surge yesterday, as traders now understand just how oversold he Japanese currency is at the moment. After sliding versus the greenback previously it is expect that the USD/JPY will hit the 108 yen level sooner rather than later.
There has been a lot of weakness for U.S. stocks recently. They tumbled on both Tuesday and Wednesday. The good news is that they were able to make a bullish comeback on Thursday.
We saw small-caps rally after the U.S. selloff earlier in Thursday’s trading session. With a number of stocks getting too oversold, it seems to be the perfect opportunity to long again. What did hit U.S. stocks earlier in the trading week was the news that the U.S. is set to cut back its bond-buying program.
Today’s labor report will be key in determining how healthy the U.S. economy is at the moment. It is expected that the number of jobs in the U.S. economy increased a lot from the previous reading.
Bank of America Corp. added 0.36 percent to $16.88. Facebook Inc. advanced 0.69 percent to the $77.08. Twitter Inc. added 3.58 percent to $51.85.
There was a lot of fluctuation during yesterday’s trading session when it came to the black gold. For most of the session it was weaker, as traders feel that there is still a lot of weakness lying ahead for the crude oil binary option. In addition, traders put their money into U.S. stocks over energies.
There was very little movement when speaking of the gold binary option during yesterday’s trading session. Investors just think that it is better for them to go short on gold at the moment overall, as it is likely that the U.S. will increase rates in the second half of 2015. With this in mind, Put options for gold are the way to go today.
Going long on the S&P 500 today is where he action is at, so make sure to open your positions now.