Dollar Caps Third Week of Gains

Dollar Caps Third Week of Gains
Currencies

USD

There was a third straight week of gains for the U.S. dollar after the European Central Bank pledged additional monetary stimulus following Japan doing the same. In addition, with the Federal Reserve moving ahead with higher interest rates, this has really lent the dollar a helping hand. It is important to take into account that the dollar’s gains were cutback on Friday after the U.S. added fewer jobs than was forecast. The good news is that the dollar touched a year high versus the euro in the week that just passed. The dollar is likely to continue making inroads into the yen and the euro in the week ahead.
JPY
The yen tumbled to a seven-week low versus the dollar recently. However, it is expected to bottom out next week, as the yen is seen as oversold. What we did actually see is the yen make some important inroads into the U.S. dollar at the end of last week’s trading session. The truth is that the Bank of Japan has continued to go ahead with some very aggressive stimulus measures and Japan’s public debt is 250% of GDP. Therefore, even if the yen makes gains next week, these would only be short term, and not medium or long term.

CAD

The loonie ended on a positive in the latter part of last week. This came about after another the release of some very positive jobs data from the Canadian economy. In fact, the nation’s unemployment rate dipped to its lowest level in six years. The currency jumped versus the majority of its 31 major currency counterparts. However, officials on November 3 pointed out that the nation still needs stimulus to give the economy a big boost. When that happens, we may see the loonie go lower.

Stocks/Indices

We did see U.S. stocks surge to their highest ever level this week, and the same was the case for the most traded indices. With big banks and average traders investing and having a lot of confidence in the financial markets, the gains which we are seeing to the moment are no surprise.
All of this came as employers hired fewer workers than was forecasted. The thing is that the unemployment rate in American dipped to its lowest rate in six years. This added to the speculation that the U.S. economy is withstanding an overseas slowdown. Trades hope for additional gains this upcoming trading week.

Commodities
Crude Oil

The crude oil binary option took a big hit during the week that just passed. The positive news is that it was able to make a mini comeback on Friday. What helped the commodity at the end of the trading week was the unemployment rate dipping in the U.S. It will be interesting to see which way the commodity will go in the next few days of trading.
Gold
The gold binary option made some very important gains during Friday’s trading session. However, it declined for much of the trading week. The fact is that the yellow metal was oversold for much of the trading week, so the gains made on Friday for much of Friday. Look to go long on Monday as a bullish comeback is 100% on the cards.

Wild Card
Dow Jones

The Dow Jones was able to make some very important gains during the week that just passed. There will need to be a lot of positive data published from the news wires throughout the coming trading week. Therefore, open weekly Call options on Monday in the Dow Jones on Monday.