Crude Oil Futures Jump in Monday Morning Trading
The EUR/USD forex pair hit a one-month low on the Fed tapering outlook. With the U.S. Federal Reserve set to cut stimulus, traders have decided that it is time for them to go short on the pair. The pair is currently trading lower by 0.05 percent at $1.3582. The dollar has also made great inroads into the euro this morning.
The pound rose for the third trading week versus the euro on housing market optimism in Britain. Traders felt that it was worth it to take risks when it came to the EUR/GBP. It was unfortunate to say that the pound sterling dipped versus the dollar for the first time in three weeks last week. The Fed tapering came as traders decided that it was time to go long on the dollar. This is why the GBP/USD is lower today.
We are seeing much strength for the yen today, because there was a lot of weakness for American stocks last week. The USD/JPY pair is lower as of now by 0.39 percent at 104.45 yen. Traders are of the view that it is worth it for them to go long on the yen this morning, because it was previously oversold. Therefore, it is no wonder that the yen is trading higher today. Moreover, as Japan’s economy improves, it is no wonder that the yen has been able to make a bullish comeback.
Stocks in American ended the trading week somewhat lower. Traders went bullish at the end of the previous trading week on some assets, but mostly bearish on others. Market traders were in favor of taking big risks after going short previously. It also needs to be taken into account that there is still relatively thin trading as full volatility won’t be back to normal until next Monday.
The Dow Jones Industrial Average climbed 0.17 percent to 16,469.99. The Nasdaq Composite Index slipped 0.27 percent to 4,131.91.
Facebook dipped 0.27 percent to $54.56. Cisco Systems slipped 0.09 percent to $21.98.
The crude oil binary option is trading higher this morning by 17 cents at the $94.14 level. Traders are of the view that it is time for them to go long on the black gold. This is because that U.S. data is positive overall. For example, the manufacturing data points to an improving American economy. This is despite the unemployment figures from the U.S. not coming out as traders thought. There are likely to be more gains when it comes to crude as the trading day passes by.
Gold futures are higher this morning by $2.20 at the $1,240.80 price level. Traders went long on gold since the beginning of last week’s trading session. Investors also feel that it is time for them to buy into the commodity today. The fact is that gold is still undervalued to a certain extent. Therefore, it is the perfect time for them to go long on the commodity today. The gains for the yellow metal come in spite of the dollar showing a bit of strength this morning. Therefore, look into going long on gold futures.
It is great to see that crude oil is starting the trading session higher this morning. Investors feel that it is time for them to take risks when it comes to the commodities market in the latest round of trading. Traders have bought into the commodity today, as it was previously oversold. As a result, investors feel that buying into the commodity may offer them high returns.