Crude Oil Sees Weekly Loss on Slow Job Growth
The dollar was one of the strongest currencies during last week’s trading session. Investors were in the mood to go long on the U.S. currency for much of last week, but it happened to dip on Friday after there was the release of U.S. economic data which showed that the American economy added fewer jobs than forecast. It will be interesting to see what effect this will have on the Fed’s decision to increase rates. The dollar in fact dipped from a 14-month high at the end of last week and traders feel more weakness may lie ahead this Monday.
There was a lot of volatility when speaking of the British currency during last week’s trading session. The pound saw the biggest weekly drop versus the dollar since July 2013 on the forecast that the Sottish independence vote will be closer than previously thought, pushing down the demand for the British pound. Sterling has been one of the worst performing currencies in the past month of trading. In fact, it has tumbled a whopping 2.1 percent, just showing how low the demand is at the moment.
It was unfortunate to see the yen dive to its lowest level in six years versus the dollar. Traders are just not feeling that it is the right time to go long on the Japanese currency at the moment. It seems that the easing policy by the BOJ officials have really taken their toll on the Japanese currency as of late. Therefore, you may want to look into going short on the yen once the upcoming week’s trading session gets going on Monday morning.
There has been a lot of movement in European stocks as of late. It is true that they were higher for much of last week, but they dipped on Friday on the latest ECB stimulus measures not being enough to give the region’s economy a big enough boost.
In Europe, the European Cantal Bank has been struggling to boost inflation. This comes at a time when key economies in the region are struggling to grow. What we are seeing in countries such as France is near record unemployment.
The Eurozone’s recovery has grounded to a halt in the second quarter, so the region’s officials will need to put together a new plan in order to boost economic growth. This means that you may want be cautious while trading in the week ahead.
There were some very big losses for crude oil during the week that just passed. Investors felt that it was better for them to ditch the black gold. This came after there With Ukraine and Russia agreeing to a ceasefire, it turned out to be the right reason to ditch the black gold. Traders may want to go short for yet another trading week, as there seems no point in going long.
Gold futures were weaker for much of the week that just passed, but the thing is that there was an important comeback as Friday’s trading session dragged on. It seems that the weak economic data from the American economy turned out lending gold futures a helping hand. More gains are on the cards for gold in the week ahead.
With gold making a bullish comeback on Friday, traders should get ready to open weekly Call options once they get a chance. This will ensure they make maximum profits in the upcoming week.