Crude Surges on Less than Expected Supply Growth
The dollar yet again excited global traders during Wednesday’s trading session. We ended up seeing the greenback surge the most in four weeks on Fed ending bond buying. However, interest rates will continue to be kept at a low rate for a prolonged period. What also helped give the greenback a much needed boost was the improved labor-market conditions. Taking into account all that has happened, traders still feel that there will be a cut in U.S. rates some time in 2015. The Fed’s policy is to keep borrowing costs at a low level for a prolonged period. Traders will be excited to see if the GBP/USD pair will go even lower.
We saw the yen make some very big losses versus the dollar on Wednesday. Despite the very big losses made for the yen versus its main peers yesterday, there are forecasts that the JPY will make a bullish comeback sooner rather than later. This is as the Fed is set to keep rates at a low level for a prolonged period. It is expected that the Japanese currency will strengthen towards 105 yen per dollar by the end of the year.
It was the case that there was a lot of strength when speaking of the euro during Tuesday’s trading session. The thing is that traders decided that it was the time for them to go sort on the European single currency on Wednesday. There may be additional losses for the euro in the next few hours. Therefore, look to open daily Put options in the
For those of you who have been following the movement of stocks in the Far East will have noticed that there were big gains in Chinese equities. They ended up rising to a five-week high on earnings.
The nation’s biggest insurers posted a surge in profit, while there was a big jump in energy shares.
Hong Kong’s Hang Seng Index made gains of 1.7 percent by the close of trading, while there were gains for other top indexes in the region.
What can be said is that China is not plagued by the woes of debt by both the Eurozone and the U.S. This will end up boosting their economic in the day, weeks and months ahead.
The crude oil binary option did make some very important gains on Wednesday after the rise in supplies was not as high as many had expected. Crude has been making a comeback after getting hit hard last week. Stockpiles rose 2.06 million barrels in the seven days ending October 24. This was after there was a rise of 21 million barrels in the prior three trading weeks. Traders feel that there will be additional gains for the commodity as the day passes by.
We saw the gold binary option make losses of around $20 yesterday after the U.S. ended bond buying. This was quite predictable, and it is likely that the metal will continue going lower before it recovers. The dollar will return as the haven assets at least in the short-term, meaning you may want to start opening Put options in the commodity once you get a chance in the hours ahead.
Gold has been one of the most volatile commodities in the past few trading weeks. With prices being on a down, now may be the perfect time to go short on the commodity. Ditching it for yet another trading session is where the action is at.