Dollar Takes a Big Hit this Monday Morning
There was a lot of strength when speaking of the greenback during last week’s trading session. The thing is that it is trading lower on all fronts in the latest round of trading. The EUR/USD forex binary option is trading higher this morning by 0.16 percent at the $1.2534 level. The USD/CHF pair has tumbled by 0.07 percent to 96.65 centimes. The USD/CAD is down 0.19 percent at C$1.1228. This is very much in contrast to last week, and shows that traders are of the view that the dollar is overvalued. Therefore, the losses which we are seeing as of now is not a surprise at all. Look for the dollar to go even lower in the hours ahead.
It is true that the British currency has made inroads into the U.S. dollar in the latest round of trading. The thing is that the GBP/USD forex pair is still trading below the key $1.6000 level, as the British economic recovery loses momentum. Economists now forecast that house prices will drop in 2015 for the first time since 2011. What we saw during last week’s trading session is the pound fall the most in 15 months, so traders need to be cautious today.
It was the case that the loonie tumbled to its lowest level in six months versus the U.S. dollar on there being a trade deficit in the month of August. The thing is that the loonie has made a mini comeback versus the greenback in the latest round of trading, showing just how quickly the situation can change in the currency market. It is also vital to understand that traders have taken a lot of risks this morning due to the very high returns which are on offer for them.
There was an important rally when speaking of U.S. stocks during Thursday and Friday’s trading sessions. Traders were of the view that the losses earlier in the week were exaggerated, meaning it was the right time for them to go long and take risks when speaking of the equities market. This is why you need to follow all of the economic data day closely and take advantage of all of the volatility.
The Dow Jones Industrial Average advanced 1.24 percent to the 17,009.69 level. The S&P 500 made gains of 1.12 percent to $1,967.90.
Bank of America Corp. added 2.43 percent to $17.29. Apple Inc. dipped 0.28 percent to $99.62. Microsoft Cop. advanced 0.72 percent to $46.09.
Even though there was a bullish comeback for American stocks in the latter part of last week’s trading session, you will still need to be very cautious while trading global stocks in the hours ahead.
The crude oil binary option is trading higher this morning by 30 cents at the $90.04 level. This comes after the commodity slumped during last week’s trading session. It seems that traders waited until prices were cheap enough to go long on the black gold. Look to open daily Call options in crude now.
Gold futures are trading higher this morning by $2.30 this morning. This is after there was simply a lack of strength for the yellow metal for much of the previous trading week. Gold is also gaining this Monday morning on the much weaker dollar. We may well see some additional gains for the commodity later on.
It is great to see that traders have so much confidence when speaking of crude oil today. More strength may be on the cards this afternoon.