Dollar Mostly Lower after U.S. Stock Market Rally- 29/04/2014

Currencies

USD

There has been a lot of action when it has come to the U.S. dollar as of late. The American currency managed to hold its ground to some extent until today. There was an important rally on Wall Street on Monday, which saw the majority of stocks and indices in the U.S. jump. The reason why this is so critical is that stocks went sideways during last week’s trading session. Therefore, the return of confidence into the financial markets has turned out to put downward pressure on the greenback. The USD/CAD pair is lower by 0.15 percent at C$1.1014.

EUR

There has been a good amount of confidence when speaking of the euro in the past 2 or so trading days. The EUR/USD forex binary option is higher at the moment by 0.16 percent at the $1.3873 level. The euro is one of the favorites among currency traders this morning. They feel that the time to go long on the currency is now due to the high returns it offers and due to German data matching forecasts.

JPY

There is a lack of demand when speaking of the Japanese currency this morning. This is after it showed a lot of strength during yesterday’s trading session. Investors are of the view that the JPY is overvalued. Therefore, now is the time for them to go short on the Japanese currency. This is especially so as it is not offering them high enough returns. The USD/JPY forex pair is higher as of now by 0.14 percent at 102.63 yen.

 

Stocks/Indices

There has been a lot of volatility when it has come to U.S. stocks in recent trading sessions. Traders actually decided that it was the time for them to go bullish yesterday. This was after there were some very big losses for equities during the previous week o trading. What can be said that at least stocks started the week on a high.

The Dow Jones Industrial Average climbed 0.53 percent to the 16,448.74 level. The S&P 500 also manage to make some impressive gains. On the other hand, the Nasdaq ended up going lower yesterday.

Bank of America Corp. dipped 6.27 percent to the $14.95 level. Facebook Inc. slumped 2.27 percent to $56.14.

Traders fee that they should continue going shoe as the trading day drags on.

 

Commodities

Crude Oil

The crude oil binary option is trading higher today by 30 cents at the $101.15 level. It is good to see that traders have so much confidence in the black gold this morning after it showed a lack of confidence yesterday. This shows just how quickly the situation can change in the commodities market. If the dollar goes even lower, this can give even more support to the crude oil binary option.

Gold

The gold binary option is trading lower today by $8.00. This is after it showed a lot of strength during last week’s trading session. Investors are of the view that the price of gold is too high. In addition, leading bank point out that price could hit the $1,050 mark in the near future. Therefore, the weakness we are seeing for gold today is not a surprise. Going short is where the action is at this morning.

 

Wild Card

Gold

If you traded gold during last week’s trading session, then you would have noticed that it was very bullish. Gold futures did start the trading week on a high, but have declined since. Investors feel that it is better for them to take their money out of the yellow metal.