Asian Stocks Start Thursday’s Session Much Lower
The dollar is mostly stronger this morning, as investors are slightly cautious at the beginning of 2014 when it comes to the currency market. The AUD/USD forex pair is trading lower by 0.33 percent at 88.95 U.S. cents. The USD/CHF pair is higher by 0.48 percent at 89.66 centimes. Going long on the USD/CHF pair seems like a safe investment.
There is much weakness for the euro in the latest round of trading. This is in spite of Spain posting positive figures. The fact is that trading is still thinner than usual, as investors feel that they should wait on the sidelines to a certain extent. The EUR/USD pair is lower by 0.2 percent at $1.3731. The euro has also lost a lot of ground versus the pound sterling, as investors prefer stronger currencies today. It may be the euro will reverse its losses in late night trading.
Canada’s currency is trading at its lowest level versus its peers since 2008. This is mainly due to Canada’s economy trailing that of the U.S. The USD/CAD pair climbed last year by 6.6 percent, as investors preferred the greenback over the loonie. The USD/CAD is trading higher today to C$1.0640. The Canadian dollar is also trading lower versus a number of its other peers this Thursday. As a result, you will want to be cautious while trading the CAD throughout today’s trading session.
There was no U.S. trading yesterday due to the New Year. Much of the attention has turned to Asian stocks this morning. They have been hit hard following data which showed China’s manufacturing came out worse than was expected. It is important to note that before this data release, the regional indexes were very high.
The weakness across Asia will have important implications once trading gets going in Europe and the U.S today. Investors may want to be cautious, as volatility maybe higher than usual due to many investors still being on Holiday.
Traders may want to go short on leading U.S. indexes.
The crude oil binary option is trading higher for the first time in three days as U.S. stockpiles fall. It has jumped 43 cents to the $98.86 price level. Traders just feel that it is worth it for them to take some risks when it comes to the black gold today. Another reason why crude prices have surged this Thursday is due to investors being of the view that the commodity was previously undervalued. Investors are hoping for more gains later.
Gold futures are much higher this Thursday by nearly $20 at the $1,221.40 price level. This is after recording its worst annual loss since 1981. Well it’s good to see the yellow metal started 2014 on a high. With the forecast of physical purchases higher, it has ended up putting a lot of upward pressure on gold. It is questionable how much lower gold could have gone, which has given traders the confidence to go long in the latest round of trading. It will be interesting to see how much higher the commodity can go this afternoon.
One of the most volatile commodities lately has been crude oil. Traders felt that it is worth it for them to invest in the commodity due to the ongoing speculation. It is stronger this morning, as investors are in a bullish mood for the beginning of 2014. They still feel that crude can surpass $100. Therefore, it is likely that the black gold will extend its gains today.