Dollar Tumbles for the Second Day versus the Yen
The dollar has slumped for the second straight trading day versus the yen on the forecast that the Federal Reserve will boost economic stimulus, as the current economic growth is not strong enough in the U.S. The greenback has been under a lot of pressure in the past week. The USD/JPY currency pair has slumped this morning by 0.17 percent to 99.82 yen. The dollar has also dived vs. the Aussie.
There is a lot of demand for the European single currency this morning. Traders are in favor of going long on the nation’s currency as it is offering them some very high returns at the moment. The EUR/USD pair is trading higher at the moment by 0.06 percent at $1.3515. The euro has also made inroads into the pound sterling. The EUR is set to build on its gains as the trading day passes by.
The Canadian dollar is trading higher on all fronts this morning. This has come due to the forecast of higher demand in the future for the nation’s commodity exports. With China’s pledge to expand economic freedoms, this is even more so. It made impressive gains versus the U.S. currency yesterday after data showed that investment in securities was at its highest level in five months. Traders still need to be cautious, as the situation can change very quickly.
The majority of U.S. stocks fell yesterday, even though the Dow Jones briefly touched the 16,000 level. The biggest losers when it came to equities yesterday were commodity stocks and consumer companies. All of this is following the U.S. stock market showing impressive gains during the latter part of the previous trading week.
A big factor for yesterday’s decline was Bank of America cutting Microsoft’s rating to underperform from neutral.
The Nasdaq Composite Index slipped 0.93 percent to the 3,940.07 level. The S&P 500 Index dipped 0.37 percent to 1,791.53.
Facebook plummeted a whopping 6.49 percent to $45.83.
Crude oil falls for the second straight trading day, as investors weigh the U.S. economic growth. In addition, crude oil stockpiles dipped after eight weeks. The crude oil binary option is trading lower this morning by 12 cents at the $93.47 price level. It is also important to take into account that as most nations are hoping for an Iran deal, this has pushed crude prices even lower. Moreover, the price of crude oil is still high, which means traders have become wary of putting large sums of money into the commodity.
We are seeing a lot of weakness for the gold binary option this morning, as traders feel that the metal is still overvalued. With the demand for global equities still quite high, this has really hurt the gold binary option. The yellow metal has lost a massive 24 percent in 2013. It is headed for its first annual decline since 2000. Traders may want to start going short on the gold binary option this Monday morning if they want to make high returns while investing in the world’s leading commodity.
It is true that crude oil futures are trading lower as of now. This does not mean that the black gold will continue going lower. The global economy is growing at a steady pace. Also, nations such as Britain were growing slowly before, but the British economy is now the fastest growing economy in the OECD. This may be one of the key factors driving up crude oil futures as the trading day passes by.