Crude Oil Caps First Weekly Surge
The greenback made some big declines towards the end of the previous trading week. As there was a return of confidence into the forex market, this led forex traders to go short on all the haven currencies. Therefore, the losses which we saw for the greenback were of no surprise. Further losses may be on the cards for the dollar in the week ahead.
The European single currency was able to climb to its highest level in more than four years versus the Japanese yen. This came after a German report showing a regional recovery may be gaining momentum. This has eased speculation that the central bank will slash rates further. It is likely that the Eurozone will return to growth in 2014. This will offer investors further opportunities in the next few months. The EUR/USD pair jumped 0.56 percent to $1.3556 during Friday’s trading session. The pair may gain further in the next five trading days.
There was a lot of weakness when it came to the Australian dollar last week. Among its biggest losses were versus the dollar and the kiwi. This came as officials from the Reserve Bank of Australia said they were open minded to currency intervention. This may lead to instability in the AUD in the next week or so.
The Dow Jones has been able to cap the longest winning streak since 2011 on a positive U.S. jobs report.
The Dow Jones industrial Average was able to climb last week by an impressive 103.07 points, or 0.7 percent, to 16,064.77. The S&P 500 jumped 0.4 percent to 1,804.76.
JPMorgan Chase soared 4.7 percent to $57.46. Intel dived 2.7 percent to $23.87.
The gains in U.S. stocks last week were important in showing that traders have a lot of risks appetite. Expect more of the same this coming week.
There were gains for the crude oil binary option last week. This enabled it to climb for the first week in seven. This was despite a slide on Friday. What lent the crude oil binary option a helping hand was the applications of U.S. unemployment benefits sliding. Also, there has not been enough progress in connection to the Iran talks in Geneva. The best day of gains was on Thursday when the price of the black gold was able to advance by 1.7 percent. More and more data is showing that the U.S. economy is experiencing a steady improvement. Therefore, do not be surprised if crude prices surge in the week ahead.
The gold binary option was not able to show that it was a reliable enough investment during last week’s trading session. It fell a touch on Friday. One of the main reasons why traders have been encouraged to stay away from the precious metal is the improving U.S. economy. As the American economy goes from strength to strength; this has only made traders to go short on the metal. Expect weakness in the days ahead.
One of the most in demand commodities at the moment is crude oil. It is true that there are many risks when trading such commodities, but this is the true reality of trading the financial markets. Traders decided to go long on crude oil futures last week, as it offered traders the possibility of making some very high returns. There will need to be positive data from the British and American economies in the week ahead in order to give the commodity a further boost. Traders may want to look into opening Call options.