Crude Oil Slide Continues on Fears of Slowing Chinese Economy
There is a lot of strength when it comes to the U.S. dollar at the moment. The dollar seems to be rising on all fronts, as traders are not in the mood to take risks in the currency market. This has been the case since the early hours of this morning. The biggest gains have been made versus the Aussie and the loonie. Get ready to go long on the dollar today.
We are seeing a lot of mixed behavior with regards to the British pound this morning. On the one hand, it is trading lower versus the dollar. On the other hand, it has made impressive inroads into the euro. The gains versus the euro have been extended in the last week or so, as the British economy continues to improve. The EUR/GBP cross is set to go even lower.
There is a lot of weakness when speaking of the Japanese yen this morning. This is after the markets in the U.S. were closed yesterday. Investors seem to favor the greenback over the yen. This has very much been the case as of late. The yen has dived into the abyss due to the Bank of Japan going ahead with very aggressive stimulus measures. There will be a lot of economic data in the hours ahead. More losses for the JPY may be on the horizon in the hours ahead.
The U.S. markets were closed yesterday, which put a lot of focus on alternative stocks. It was unfortunate that there were losses at the end of the previous trading week.
The Nasdaq Composite Index and S&P 500 made some very big losses on Friday. However, the Dow Jones was able to make some very big gains.
When it came to banking and tech stocks, we saw big declines. This is after they climbed during the idle of last week’s trading session.
As the U.S. market opens in the hours ahead, you will want to get ready to open positions in your favorite stocks.
The crude oil binary option made losses of 15 cents this morning as there are fears over the slowing Chinese economy. Investors have taken it upon themselves to sell commodities such as crude as of late after the commodity managed to make big gains previously. The reality is that the commodity is overvalued at the moment. Traders have sold crude as the greenback has managed to make a bullish upturn. There is a lot of volatility in the leading energies at the moment after the U.S. market was closed yesterday. Therefore, look to open Put options as soon as possible.
Gold did manage to make some important gains during yesterday’s trading session. Investors felt like it was worth it for them to ditch the commodity this morning after it made some very important gains during yesterday’s trading session. With the dollar making big gains, it is no wonder that gold has dived into the abyss in the latest round of trading. Look for the commodity to make even bigger losses in the next few hours of trading.
There has been a lot of weakness in the commodities market in recent hours of trading. What we are seeing with commodities at the moment is the correlation with the dollar. Gold is down as of now due to the speculation which is going on in the currency market. If the dollar continues to go higher, then this could lead to gold futures to make additional declines.