There ended up being a lot of bullishness when it came to the American currency during last week’s trading session. Traders were in favor of taking risks when it came to the dollar. This is after it showed much weakness in the early part of the trading week. This shows just how fast the situation can change in the forex market. Investors are of the view that the greenback will surge yet again this coming week.
The euro is one of the most volatile currencies these days. Traders went bullish on the European currency for much of the week that just passed. The thing is that the EUR dipped as the trading week passed by. This was due to the EUR being very much overvalued, so traders felt that it was best to unwind their long positions in the euro. More losses may be on the cards for the euro in the days ahead, so open Puts in the EUR/USD.
A currency which has lost a good amount of its value as the trading week dragged on was the Aussie. This occurred as the currency was somewhat overvalued. Also, there was less demand for assets in the region. Investors have been worried about the slowing Chinese economy. This is important due to China bring Australia’s largest trading partner. Therefore, economic problems in the world’s second largest economy will surely hurt both the Australian economy and the Australian dollar. Look to go short on the AUD in the coming week of trading.
The reality was that we saw a lot of mixed behavior during last week’s trading session. The good news is that there ended up being big gains at the end of the previous trading week. This came about due to internet shares and retailers gaining.
All of this enabled the Dow Jones to hit an all-time high during Friday’s trading session. The leading shares rebounded after a three-day sell-off.
The S&P 500 Index advanced on Friday by 0.2 percent to the 1,878.48. The Dow Jones Industrial Average jumped on Friday by 0.2 percent to 16.583.35.
Investors are hoping that U.S. stocks will go even higher in the week ahead
The crude oil binary option was able to cap its first weekly advance in three due to the commodity’s supplies sliding for the first time in a month in the U.S. Crude oil stockpiles dropped by 1.78 million barrels. The thing is that crude oil futures have been oversold as of late which gave traders the confidence to go long in the second half of the trading week. Investors are hoping the commodity will jump in the coming week of trading.
Traders preferred to go long on gold on Friday, which cut its weekly losses. The problem is that the commodity still slumped during the week that just passed. Investors were of the view that they should go short on gold, as the dollar was a much more attractive asset to put their money into.
One of the biggest movers in the commodities market at the moment is crude oil. Investors have been in favor of opening Call options when it came to the commodity. The fact is that there are many factors driving it higher. It is more likely than not that there will be additional gains in the coming trading days, so open weekly Call options on Monday morning.