Dow Jones Extends its Record
The dollar is trading higher on all fronts this morning. This is in contrast to the weakness which we saw in previous trading weeks for the U.S. dollar. The EUR/USD pair has slumped this Tuesday by 0.16 percent to $1.3385. The AUD/USD has declined a whopping 0.29 percent to 93.32 U.S. cents. The USD has also made impressive inroads into a number of its other peers this morning. Do not be surprised if the greenback is able to build on its current gains.
The British pound is trading lower for a second straight trading day versus the dollar and the euro prior to the Bank of England publishing its quarterly inflation report in the days ahead. The British currency tumbled versus the majority of its most traded peers. It is important to take into account that the GBP was one of the most bullish currencies last week. It may be that there are technical factors driving the British currency lower today. Look for the GBP to gain some lost momentum later on.
The Canadian dollar is trading higher versus its main currency counterparts this morning on improved economic growth in North America. It is also important to understand that the economic situation in Canada is even more positive than the United States. With the economy in Canada growing faster than most other developed economies, this may encourage investors to go bullish this Tuesday.
There was an impressive rally on Wall Street yesterday, allowing the Dow Jones to extend its record.
With the forecast of cuts to monetary stimulus and trader waiting earnings reports from some of the leading U.S. companies, investors took it upon themselves to go long on U.S. stocks.
The S&P 500 Index jumped 0.1 percent to 1,771.89. The Dow Jones advanced 0.1 percent to 15,783.1.
Intel added 0.33 percent to $24.17. Citigroup jumped 0.46 percent to $50.17.
Traders are hoping that stocks will extend their gains once the U.S. market opens this Wednesday afternoon.
The crude oil binary option is trading lower this morning by 23 cents at the $94.91 price level. The fall in the commodity this morning comes after it made two days of gains. This shows just how volatile the black gold is at the moment. This is why you will need to trade cautiously when it comes to the crude oil binary option. It is vital that you know that crude climbed 0.6 percent yesterday. Also remember that crude slipped 5.8 percent in October, which means that the commodity may face a similar fate this month. This is especially so as an Iran nuclear deal looms.
The gold binary option is trading lower this morning by $2. Tuesday’s session is starting very different to the way Monday started. This is because we are seeing the leading commodities going lower today, but the opposite thing happened on Monday. This is evidence of just how unpredictable the commodities market is at the moment. It may be that the markets being closed in several European countries yesterday have led to volatile behavior in the gold binary option today.
The GBP/USD is one of the most popular currency pairs among forex traders. They are attracted to the pair due to its daily volatility, meaning there are many opportunities to make money from the price movements. The reality is that the GBP/USD is a lot lower this morning, as investors are simply not in the mood to take risks. However, this could change in the latter hours of trading.