Dollar Rallies Longest in Four Years

Dollar Rallies Longest in Four Years

05.10.14

Currencies

USD

The dollar has capped its longest string of gains in four years. With there being important positive jobs data that has come out of the U.S. economy, this has turned out to boost the U.S. dollar yet again. We saw the U.S. currency jump notably versus all of its 16 main currency counterparts. This has come following data showing that U.S. companies added more workers than forecast during the previous month of trading. In fact, the unemployment level fell to the lowest level since 2008. It seems that the Fed likes the unemployment rate, and may lead it to increase interest rates sooner rather than later in 2015.

GBP

The pound ended up making some very big losses yesterday versus the dollar. Traders have decided to ditch the GBP/USD forex binary option not really due to pound weakness, but due to greenback strength. What we did see that pound sterling make its biggest loss versus the U.S. dollar in 15 months. This shows just how much volatility in the forex market as of late. More losses may lie ahead for the sterling if the economy slows down.

CAD

We ended up seeing the loonie make some very big losses at the end of last week’s trading session. The Canadian dollar fell to a six-month low versus the greenback on an unexpected trade deficit posted in August. This seems to support the BOC’s cautious outlook on the Canadian economy. The good news for the loonie is that it was able to make some important inroads into the Aussie and the kiwi. This is after data showed the jobless rate in the U.S. tumbled to a six-year low. The Canadian dollar may make a bullish comeback against the dollar during Monday’s trading session.

Stocks/Indices

We have seen so much volatility for European and U.S. stocks in previous trading weeks. One good thing to say is that European stocks ended last week’s trading session on a high. In fact, European equities surged from the biggest selloff in 15 months. It seems that the positive U.S. data resulted produced a bullish comeback.

The Stoxx 600 Index added 1 percent on Friday, but actually slumped a whopping 2.4 percent on Thursday. The FTSE 100 Index advanced 1.3 percent and France’s CAC 40 added 0.9 percent.

The positive news sit hat EasyJet added 6.4 percent ton Friday. Also, there were big gains for a number of other leading shares. The drop for Tesco is set to continue in the week ahead.

Commodities

Crude Oil

One of the most exciting commodities to gain at the moment is the crude oil binary option. The commodity is headed on a bear market on supply. In fact, the WTI has slipped below $90, as OPEC members are unsure at which rate to put output. What is more, it is thought that current supplies are more than enough for the expected falling demand for crude oil. In order to make maximum returns from the commodity next week, then go short in Monday morning trading.

Gold

The gold binary option has erased its 2014 gains, as traders pour their money into the greenback. The reason why traders have ditched the yellow metal is after the release of some very positive economic data from America. This was the improved jobless claims data. Investors are of the view that there will be additional losses in the next few trading days.

Wild Card

Gold

With there being a big case for selling gold, look to open weekly Put options once the upcoming trading week gets going.