Dow Jones Surges Past 18,000 Mark
The dollar gauge hit its highest level in five years on Tuesday. This was perfect news prior to the holidays kicking in. The greenback was able to surge notably after the GDP figures came out much better than forecasted. The final figure was an amazing 5.0 percent, showing just how strong the US economy is at the moment. It was the case that the greenback dipped versus bitcoin, but it was able to make inroads into the pound, Aussie and the Swiss franc. This means that traders understand that there is still more bullishness left in the greenback. Make sure to follow the economic data as it is published from the news wires later on.
For those of you who traded the European single currency would have noticed that it made some very big losses versus the greenback and the Swiss franc. Traders are of the view that it is better for them to go short on the EUR due to the lack of returns in it for them. In addition, traders have taken their money out of risky currencies and put them into global stocks in order to put risks to a minimum.
Those of you who traded the yen will have noticed that it is one of the most bearish currencies at the moment. Investors just do not feel that it is worth it for them to take very big risks due to the Bank of Japan’s policy of monetary stimulus. To top this off, the economy is in deep recession, meaning that there is not much backing the nation’s currency at the moment. This is why you may want to ditch it.
If you have been trading global stocks as of late, then you will have noticed the impressive rally we have experienced. This is good if you have decided to go long on the leading stocks and indices. The thing is that it is not just American stocks which have climbed; we have seen strength for equities in Canada, Asia and Europe. In addition, UK stocks have jumped now for six straight trading days, showing just how much confidence traders have in the financial markets at the moment.
The thing which really drove stocks higher in all regions on Tuesday was U.S. GDP coming out at 5.0 percent, much higher than was forecasted. Expect more bullish American data.
The crude oil binary option made gains of 3.4 percent in New York on Tuesday, as traders felt like taking risks when speaking of the commodity. This is after it declined notably in previous trading sessions. This shows just how quickly the situation can change in the commodities market. The crude oil binary option was also boosted yesterday by very positive economic data and a global stock market rally. More gains may be on the cards for crude oil, so get ready to open daily Call options.
Gold futures slumped for yet another trading season, as investors felt that there are not high returns to be made from the yellow metal. Traders instead put their money into stocks, energies and the US dollar. Expect more gold weakness in the coming hours of trading. This means you will want to open daily Put options now.
For those of you who have been following the direction of the crude oil binary option closely will have noticed just how strong it has been going. This means that going long later today is where the action is at, so go bullish to make profit.