Dow Jones the Big Winner
The dollar seems to be trading higher on all fronts this morning. The U.S. currency is showing more decisiveness today than it has been showing in previous trading days. The EUR/USD pair is lower this morning by 0.3 percent at $1.3647. The AUD/USD forex pair is down at the moment by 0.57 percent at the 89.17 U.S. cents level. More gains for the greenback may be on the cards in the hours ahead.
The euro is losing ground this morning. Its biggest losses have been versus the pound and the dollar. Traders are of the view that it is better for them to ditch the euro in the latest round of trading. This comes as global economic data is just not convincing enough at the moment. Therefore, be prepared for there to be bigger losses for the EUR.
The pound sterling is mixed at the moment. It is true that it has lost a lot of ground versus the greenback. However, it is important to take into account that its losses versus the greenback are more owed to the dollar’s strength than the pound’s weakness. The GBP/USD currency pair is currently lower by 0.23 percent at the $1.6632 level. It may be that the GBP will continue its slide into the abyss, as the trading day drags on, so be very prepared for this.
U.S. stocks were mixed to lower yesterday, as traders just have not been as confident following the weakness which we saw in Asian stocks. There has not been enough to post positive economic data published from the global economy lately, which is why traders have stayed on the sidelines to a certain extent.
The Dow Jones was actually a big winner yesterday, as it advanced 0.12 percent to 16,198.41. The Nasdaq Composite Index rose 0.1 percent to 4,292.06.
Bank of America Corp. dipped 0.06 percent to $16.33. Facebook Inc. made losses of 0.84 percent to $69.26.
There will be a god amount of economic data published from the news wires in the next few hours of trading. This will be key in driving stock prices later.
Crude oil made some very impressive gains during yesterday’s trading session. Investors felt that it was worth it for them to go long on the black gold, as it has been a touch undervalued. The good news is that the commodity advanced the most in a week yesterday. Also, the commodity is lower this morning by about 8 cents. However, there may end up being much bullishness of the commodity in afternoon trading. Therefore, get ready to open daily Calls in in the commodity.
We are seeing much strength for gold this morning. It is trading higher as of now by $4.50, as traders feel that it is worth it for them to go long on the commodity. This is as there is simply a lack of alternative assets to invest in this Thursday morning. The gains come for the commodity, even though the Federal Reserve is expected to continue with tapering.
There has been a lot of volatility when it has come to global indices in recent trading weeks. The S&P 500 has ended up making some losses, even though other indexes have climbed at time. The reality is that there are many risks when investing in American equities, which need to be taken into account each trading day. It may be that the S&P 500 will be able to make a bullish comeback this Thursday.