The yen has been able to rise to its highest level in four months versus the yen. This is on the forecast that the BOJ will refrain in adding further stimulus to the nation’s economy. The yen has gained versus the majority of its main peers this Thursday morning. The yen rally may be pointing to a setback in risk appetite. This means that you will need to be cautious while trading the currency market today. Investors are of the view that the yen will continue going higher as the trading day passes by. Therefore, go short on the USD/JPY pair.
The kiwi has risen the most in four months versus its main peers. This comes after the central bank raised interest rates. It jumped versus all 18 of its major counterparts, as traders are looking to buy into higher yielding currencies this morning. The kiwi surged 1.3 percent versus the greenback in the latest round of trading. Investors are set to continue going long on the New Zealand currency in the hours ahead. Therefore, you may want to look into opening daily Call options in the NZD/USD currency pair.
The British pound is very bullish this morning. It is trading higher for the sixth straight trading day against the euro. This is after British jobs data came out much better than was expected. It seems that most aspects of the British economy are strong, which is supporting it a lot as of late. The pound seems like an attractive alternative to the euro, as the ECB is set to expand economic stimulus in the region. With the economy going from strength to strength, the cable has jumped 7.8 percent in the past 12 months.
After so many days of U.S. stocks rising, they ended up going lower during yesterday’s trading session. It seems that they were quite overvalued, so traders have decided that it is better for them to take out their profits.
The Dow Jones Industrial Average made loses of 0.6 percent to 16,843.88. The S&P 500 tumbled 0.35 percent to 1,943.89.
Bank of American Corp. dipped 2.07 percent to the $15.59 level. Apple Inc. fell 0.41 percent to $93.86.
What seemed to drive the markets lower was House Majority Leader Eric Cantor losing a primary election. This led investors to the conclusion that the days of cheap lending may soon be coming to a close.
The crude oil binary option is rising for the second straight trading day, as crude oil stockpiles slide. In addition, there was a slump in U.S. stocks yesterday, which led traders to go long the black gold. It is likely that the commodity will build on its current gains this Thursday afternoon.
Gold futures are trading near their highest level in two days. This comes as there is a rally in other metals too. However, the gains for the gold binary option are not big, which means that you may want to be very cautious while trading today. Going long on the commodity is still the way to go, so take advantage of the current trend.
It was the case that the Dow Jones ended up making some very big gains in previous trading sessions Investors were of the view that it was the right time for them to go very long. The thing is that they started to go short as the trading day passed by. Look for big losses when it comes to the Dow during the U.S. session.