The dollar has fallen to the lowest level since October 2013 on lower treasury yields. A factor which has pushed the greenback lower versus the euro is the Spanish economy unexpectedly improving. The dollar has also lost a lot of ground against the Swiss franc this morning. The thing is that traders are of the view that the losses for the greenback are overdone. Therefore, it would not be a surprise if the dollar was able to make a bullish comeback versus its peers as the trading day passes by.
One of the biggest movers in recent trading sessions has been the European single currency. It has managed to cap some very important gains versus the dollar in previous trading sessions. The thing is that traders feel that they should go long on the currency now as it seems to be offering them some high returns. This is on the improving economy in the region. However, traders should be very cautious while trading the euro in the hours ahead.
The pound is one of the most in demand currencies at the moment. Traders are of the view that they should go long on the sterling as it seems to be offering them very high returns. In fact, the GBP/USD pair is trading at its highest level since August 2009. This has come after manufacturing data from the British economy came out much better than was forecasted. If the British economy continues to soar, then this could push the GBP/USD pair even higher.
There turned out to be a big stock selloff during yesterday’s trading session. Investors were of the view that it was time for them to go short due to the lack of returns available for them from some of the leading equities. Traders just did not feel that it was the time for them to take the big risks. This has been the mentality of traders as of late.
The Dow Jones Industrial Average dived 0.78 percent to the 16,401.02 level. The S&P 500 made losses of 0.9 percent to 1,867.72.
Twitter Inc. dropped a massive 17.81 percent to $31.85. Bank of America Corp. dived 2.32 percent to $14.73.
There will be a lot of important economic data published from the news wires this afternoon. Therefore, get ready to open your Puts.
There is a lot of strength when it has come to the crude oil binary option in the latest round of trading. The commodity has gained 82 cents this morning alone as there is a return of confidence in the commodities market. This is in contract to what we saw in the beginning of the trading week when crude was showing a lack of strength. More strength may be on the card for crude today.
The gold binary option is trading higher this morning by $5.00 at the $1,313.70 level. Traders are of the view that it is worth it for them to go long on the commodity in the latest round of trading. It has jumped more than $5.00 as the dollar is showing a lack of strength. To top this off, traders have decided that now is the time for them to go long on the yellow metal.
There has been a lot of action going on in the financial markets as of late. In fact, we saw the Dow Jones and other leading U.S. indexes take a very big hit. Traders may actually go long this afternoon, as the Dow has been oversold.