Dollar Starts the New Year on a High
For those of you who have been following the dollar since the start of the New Year will have noticed that it has commenced 2015 on a high. It has really surged versus all of its major peers as traders realize that an interest rate rise by the Fed is looming. This comes at a time when the economy of America is booming, while that of other countries is slumping. Therefore, it is no surprise why the greenback is so strong at the moment versus its counter currencies. It has jumped versus the Swiss franc, bitcoin and a number of is other peers. Further gains are on the cards in the week ahead.
The European single currency is one of the most bearish currencies these days. Traders have taken it upon themselves to go short on the euro due to the lack of factors backing it. In addition, while the Fed is set to raise interest rates, the ECB is set to go ahead with some very aggressive stimulus measures. Therefore, the weakness we saw this last week for the euro is no surprise at all.
For those of you who have been following the forex market very closely will have noticed that the sterling has been hit very hard. Traders just have not felt that it is worth it for them to go long on the sterling due to the lack of returns it offers. It ended up capping very big losses versus the greenback on Friday and for much of the trading week. Go short on the pound once you get a chance this Monday.
There has been a lot of movement in global stocks in recent trading days and weeks. The thing is that there was weakness on Friday, but there were gains for the leading stocks and indices in America and England during the trading week that just passed. This all comes following the FTSE sliding last year for the first time since 2014, showing just what a lack of confidence there is in the British economy, as it cools down.
The Dow Jones and the Nasdaq were able to make some very important gains during the trading week. Investors are of the view that they should continue going long once Monday’s trading gets going. Therefore, you should get on the bandwagon to make maximum returns.
Traders felt that it was better for them to go short on crude oil for yet another trading week as production increased in the U.S.ad Iraq. In addition, key OPEC members stated that lower prices may lie ahead, leading traders to go short on all fronts. What is more is that traders went long on the greenback, which automatically led the commodity to slide. Traders should get ready for additional losses when speaking of crude oil futures.
Gold was trading sideways for much of the trading week, but the good news is that it was able to end Friday’s trading higher. Investors just think that it is better for them to go long at the moment due to the high returns which the metal offers. Look to open weekly Call options in gold once you get a free chance Monday morning.
It has been the case that crude oil prices have gone lower and lower as traders just feel that it is not right for them to invest their money in the commodity. Look to go short for yet another trading week in order to make maximum returns.