Crude Tumbles on Iran Nuclear Deal
The dollar was lower for much of yesterday’s session versus its main peers, but traders should be careful not to count out the American currency. This is because there are factors backing up the dollar still. The greenback did make some big losses versus the Swiss France, euro and loonie. There will need to be positive data from the leading economies today to ensure the dollar’s weakness continues into late night trading.
The pound slid on all fronts during yesterday’s trading session. It failed to recover from the heavy losses which it made during the early part of the trading session. Among the biggest losses for the British currency were versus the euro and the dollar. Traders have just heavily sold the pound due to taking out the big profits which they made in previous trading weeks. The comeback for the sterling may be ahead, so get ready for this possibility.
One of the biggest losers in previous trading weeks has been the Australian dollar. It may be that the Aussie did not suffer like other currencies during the 2008 financial crisis and thereafter, but there are still problems with the Australian economy. The good news is that the Aussie cut some of its previous losses yesterday, as traders decided that it was the perfect time for them to get on the bandwagon and go long. Among the most impressive gains were made vs. the Aussie. You may want to open Call options in the AUD/USD forex pair as the trading day passes by.
American stocks ended up making some very big losses amid them fearing deep stimulus cuts. What traders failing to realize that these cuts may actually help stocks rise in the medium and long term. More money being printed is a bad thing for the U.S. economy.
The Dow Jones tumbled more than 100 points, as traders felt like ditching key American indices during trading on Monday.
It now seems that assets are oversold, meaning that a bullish comeback may be on the cards in the hours ahead.
The crude oil binary option made some very big losses in late night trading on Monday. This came in response to a report that Iran agreed to a multilateral deal that will curb its nuclear ambitions. As a result, the nation will get sanctions relief, which will in turn lead to higher supply. With higher supply, this will surely drive prices lower over time. This is why traders took the opportunity to sell during yesterday’s trading session. Be very weary while trading crude oil in the coming hours of trading.
There was weakness for gold for much of yesterday’s trading session, but the yellow metal managed to gain as the trading day passed by. Investors took it upon themselves to open Calls in gold, which helped it rise as much as $7 in the evening. This came as the dollar started to lose a lot of value against its leading counterparts. With the greenback sliding, the gains which we saw for gold were no surprise at all.
One of the biggest losers when it came to the financial markets yesterday was crude oil. Investors felt that it was worth it for them to ditch the commodity as it was simply not offering them high enough returns. The fact is that crude has been sliding for nearly 2 weeks now, as investors just feel that they should continue to sell the commodity. Further losses may be on the cards this afternoon.