Dollar Surges after Fed Cuts Stimulus
The U.S. dollar climbed against its main peers following the decision by the U.S. Federal Reserve to cut economic stimulus. This reinforced the prospects that the American economy is improving. Actually, the reason why stimulus was cut was due to this very fact. The EUR/USD currency pair is lower this morning by 0.11 percent at $1.3672. The USD/JPY is lower by 0.33 percent at 103.95 yen.
Traders are in favor of buying the Japanese yen this morning amid the rally which we are seeing in Asian stocks. The yen has made inroads into the dollar and the euro in the latest round of trading. This is after a long period where the yen dived versus its main peers. It is good to see that there is now more stability in the forex market this morning. The Japanese currency made build on its current gains, so go short on the USD/JPY forex binary option.
We are seeing a lot of weakness when it comes to the Canadian dollar this morning following the Fed’s decision to cut stimulus. In fact, the CAD posted its biggest decline in eight weeks. The currency has been declining in recent trading days following comments made by key government officials that the CAD needs to drop further in order to help exporters. This is after it has been very strong in previous months. Look to go short on the CAD today.
At least there was positive news with stocks and indices on Wall Street yesterday afternoon. This is after two weeks which was them make heavy losses. The decision by the U.S. Federal Reserve to cut stimulus resulted in the S&P 500 hitting a record and other assets posting a rally.
The S&P 500 Index advanced 1.7 percent to the 1,810.65 level. The Dow Jones Industrial Average surged 292.71 points to 16.167.97.
Facebook made gains of 1.29 percent to $55.57. Nokia jumped 4.76 percent to $7.71. Intel rose 1.99 percent to $25.15.
The crude oil binary option is trading near its highest price level in a week on Fed tapering and U.S. stockpiles declining. Also, the improved economic growth in a number of leading economies has pushed up demand for commodities such as crude oil. The black gold climbed 0.6 percent during yesterday’s trading session. Prices are virtually unchanged this morning, as investors are waiting to see developments from the global economy before going long. If you want to make profit from the commodities market, then look to open Call options in crude oil this afternoon.
The gold binary option has plummeted $14.00 this morning following the Fed’s decisions to reduce bond buying. With the dollar and gold trading inversely, it is no wonder that the much stronger greenback has put much downward pressure on the commodity this morning. The fact of the matter is that there are many factors driving gold and a lot of other commodities this Thursday morning. This means that you want to be cautious while trading gold today. It may be that gold will continue going lower in the latter hours of trading today.
The S&P 500 made a bullish comeback during yesterday’s trading session. This is after many days when the index declined. Moreover, there were also impressive gains for a numbers of other leading American indices. There will be a lot of economic data from the U.S. economy during the U.S. session today. Therefore, opening Call options in the S&P 500 this Thursday may turn out to bring high returns.