Asian Stocks Surge Ahead this Thursday
The dollar is very volatile this morning, as traders are not sure which currency they should put their funds into. This has been the mentality of traders since the beginning of this morning’s trading session. On one hand, the greenback has surged versus the Swiss franc and the yen. On the other hand, it is trading much lower versus the Aussie and the euro.
The euro is gaining ground on all fronts this morning, as investors are of the view that it is worth it for them to put money into currencies which are deemed as risky. It has been the view of traders today that they should buy into risky currencies, as some of them are undervalued. The euro has made some impressive inroads into the pound and the greenback during Thursday morning trading. The EUR is set to build on its current gains later on.
The yen dived to a five year lower versus the U.S. dollar, as traders decided to put their money into Japanese equities. Also, the decision by the Bank of Japan to put even more money into the nation’s economy has encouraged traders to ditch the yen and put it into the greenback. With America taking the move to cut economic stimulus, this has gone to only strengthen the greenback. Therefore, it is no wonder why the USD/JPY pair is so weak at the moment.
Asian stocks have gone much higher this morning, pushing them to their longest winning streak in three months. Amid the optimism, the Topix index is trading at its highest level in five years. This has come about amid the yen tumbling.
It seems that traders are willing to take a lot more risks due to the central banks in the region loosening monetary policy. Moreover, with traders deciding to take their money out of the Japanese yen, they have put their funds into risky Asians stocks and indices. This will be key in driving U.S. stocks during afternoon trading.
Crude oil futures are trading higher for the second trading day amid the speculation that stockpiles dropped in the U.S., the world’s biggest consumer. Moreover, the gains are also owed to the continued violence in South Sudan. The crude oil binary option is trading higher this morning by 26 cents at the $99.17 level. Traders foresee the commodity hitting the $100 mark very soon. Therefore, you will want to get prepared for this possibility. Traders are already looking to go long on crude in post-Christmas day trading.
The gold binary option has been under a lot of downward pressure in recent trading weeks. There just have not been enough factors driving up the commodity. In fact, the metal dived below the $1200 mark recently, as traders were simply not in the mood to take risks. The good news is that the commodity is trading higher this morning by $7 as there has been a return of confidence in the commodities market. Therefore, you may want to look into opening Call options.
Traders got a break during Christmas Day from U.S. stocks. For those of you that had any spare time, I hope you studied your positions when it came to the global markets. There has been a return of confidence in stocks as of late, which has allowed traders to make a lot of profit. It is forecasted that the Dow Jones may get a boost this afternoon due to the gains which we saw in Asian stocks today.