The greenback was much higher a few hours ago, but it is starting to lose ground. This comes after stocks in the U.S. declined on Friday. It seems that traders realize that the U.S. currency is overvalued, which is why they have started to sell it. For example, the EUR/USD pair was much lower an hour ago, but it has since made bullish comeback. In addition, the USD has also dropped versus exotic currencies, as investors are of the view that it is worth it for them to put their funds into alternative currencies.
When it has come to the euro, we saw much weakness. Investors decided that it was right for them to go shot on the European single currency during last week’s trading session due to the lack of returns which can be made from the financial markets. The EUR/USD currency pair is trading higher as of now by 0.01 percent. The euro has also made inroads into a number of its other peers.
The pound sterling has not performed as well versus other main peers. It has been trading lower since the latter part of the previous trading week. Among the biggest losses when it has come to the pound sterling this morning has been versus the euro and the dollar. More losses may be on the cards with the GBP.
It is true that there were many gains for American stocks during last week’s trading session. The thing is that they did not perform well on Friday. Traders did realize that U.S. equities were overvalued, which led them to go short at the end of the previous trading week.
The Dow Jones Industrial Average dipped 0.96 percent to 16,412.71. The S&P 500 Index declined 1.25 percent to 1,865.09.
Facebook Inc. dipped 4.61 percent to $56.75. Bank of American Corp. made losses of 2.51 percent to $16.72.
The fact is that there has been a lot of positive economic data published from the U.S. economy in recent trading week. However, many traders are starting to get worried about the pace of the recovery. If interest rates are raised in the future, then this could have a big impact on U.S. GDP. Therefore, make sure to be cautious while trading stocks today.
The crude oil binary option is trading lower today by 32 cents at the $100.83 level. Traders have decided that it is time for them to short on the black gold this morning after the gains which it made at the end of the previous week of trading. Also, many traders seem to be waiting on the sidelines at the moment, as investing in the markets right now seems too risky. Therefore, you will need to take this into account if you are serious about investing in crude in the hours ahead.
Gold futures did manage to surge on Friday by $19.00 as there was so much confidence in the commodities market. Traders were just in favor of taking big risks after the commodity was oversold. The thing is that the gold binary option is trading lower this morning by $3.00, as they are waiting until more data is leased from the news wires.
It is true that the Dow Jones did turn out to make some big losses during Friday’s trading session. Investors just did not feel that it was the right time for them to take big risks. This was just the mentality of traders. Therefore, here may end up opening a bullish comeback in the hours ahead, so be ready.