Dollar Holding Strength Prior to the New Year
Dollar is holding ground prior to the New Year, as traders favor the safe-haven currency. The EUR/USD pair is lower as of now by 0.04 percent at $1.3795. The GBP/USD pair has lost 0.1 percent to $1.6482. It seems that traders are simply not in the mood to take risks with regards to the currency market today.
The euro is rather mixed this morning. On one hand, it has managed to gain versus the pound. On the other hand, the European single currency has lost ground vs. the euro. This shows just how unstable the forex market is this Tuesday morning. As a result, you will want be very cautious in the coming hours of trading. The markets in Europe are closed, which has resulted in thin trading. Traders may want to go short on the EUR/USD currency pair as the trading day unfolds.
It is good to see that there is more confidence for the Australian dollar this morning. Traders are of the view that they should buy into the Aussie due to the high returns which can be made before the onset of the New Year. The fact is that the Australian currency is undervalued to a certain extent at the moment. As a result, look into opening Call options in the AUD/USD pair today if you are up for taking some risks as the trading day drags on.
We saw most U.S. stocks take a hit during yesterday’s trading session. Investors were not in the mood to take risks with American equities, as many of them have decided to sit on the sidelines. Therefore, you will want to take this into account while trading U.S. stocks in the days ahead.
The Nasdaq Composite Index dipped 0.06 percent to 4,154.20. The Dow Jones Industrial Average actually gained 0.16 percent to the 16,504.29 level.
Facebook Inc. made losses of 3.12 percent to the $53.71 level. Bank of America Corp. slipped 0.83 percent to $15.54.
We saw losses for the crude oil binary option during yesterday’s trading session. It slipped form the $100 mark, as traders felt that the commodity was overvalued. Also, they decided that it was time for them to take out the profits which they made during the previous week of trading. Traders may want to stay away from crude oil to minimize the potential losses. What you can do in the meantime is study the black gold in order to make big moves after the New Year.
Gold is headed for very big losses this year, as traders just do not feel that it is time for them to go long on the commodity. The gold binary option has started the day lower by $2.70, as traders really do not feel that they should take risks with the commodity. There is just a lack of risk appetite with commodities this morning. In other words, traders have taken their money out of the leading commodities in the latest round of trading. Going short on gold seems to be the right thing to do.
The Dow Jones has been one of the biggest gainers in the previous trading days when it has come to indices. This was in spite of other indexes being hit hard. This shows just how important it is to invest in the leading indices at the moment. Moreover, the Dow has been outperforming. It may be that the Dow Jones will be able to extend its gains later.