Asian Stocks Slump from Six-Year High- 07/07/2014

Currencies

USD

We recently saw the dollar hit its highest level in a week on Goldman Sachs forecasting that the Fed will bring forward the interest rate rise. Traders wait the Federal Reserve minutes this week. The dollar is trading higher versus 14 out of 16 of its most traded currency counterparts in the latest round of trading. The bullish greenback has come after the release of a lot of bullish economic data was published from the American economy. Look for the greenback to build on its current gains later on.

EUR

We are seeing a lot of weakness when speaking of the euro in the latest round of trading. Investors have been in the mood to go short on the euro in the latest round of trading this has come after there was a big slump in Asian equities a few hours ago. The euro has made versus big losses versus the greenback and a number of other peers. Traders should look to go short on the euro once they get a free chance.

NZD

The New Zealand dollar is trading lower for the fourth straight trading day. Home prices rose 8 percent from a year earlier in New Zealand in June, the slowest pace since June 2013. Traders are of the view that the economy is overheating, and the best thing for them to do now is to go short on the kiwi. Traders may want to continue going short on the NZD/USD pair today.

 

 

Stocks/Indices

Asian stocks ended up making some very big losses a few hours ago. In fact, they tumbled from their highest level in six years. It seems that the top stocks in Asia were overvalued, so traders took it upon themselves to go short.

Among the biggest losers were the technology companies. However, there was a big slump in a number of other regional stocks too.

The MSCI Asia Pacific Index ended up slumping a few hours ago. Japan’s Topix Index fell 0.2 percent. South Korea’s Kospi Index fell 0.4 percent.

Traders are hoping that it will not hurt U.S. stocks later on during the U.S. session.

 

Commodities

Crude Oil

The crude oil binary option ended up making very big losses during last week’s trading session, and on Friday in particular. The crude oil binary option is trading lower by 4 cents this morning. The commodity is higher as of now at the same time as the greenback. If the dollar continues its upward trend in the hours ahead, then this could end up opening crude oil for building on their gains. Therefore, stay on the sidelines for now if you want to cut any potential losses this Monday.

Gold

We did see traders a bit more confident in the gold binary option on Friday. The bad news is that gold has slumped by more than $7. Traders are of the view that it is time for them to ditch the yellow metal as there is so much confidence in the yellow metal. In fact, there is not so much confidence in the commodities market at the moment, so going short on the metal today is where the action is at.

 

Wild Card

EUR/USD

The EUR/USD forex binary option is trading lower in the latest round of trading. Investors are fearful that the pair will continue its slide in the abyss in the coming hours of trading. If you want to make maximum returns form the financial markets this afternoon, then start opening daily Call options in the EUR/USD currency pair now.