Yen Caps Best Week in 16 Months

Yen Caps Best Week in 16 Months

Currencies

USD

There was a lot of action in the forex market during the trading week that just passed. The dollar ended its seven-week gain amid the crash in oil prices. The commodity tumbled a whopping 4% on Friday alone, showing just how much action there is at the moment in the financial markets. It seems that traders decided to ditch the greenback in the latter part of the trading week due to lower inflation and global economic outlook expectations. This increased the bets that the Fed will think about when to raise interest rates. The dollar slid versus the yen by a whopping 2.2 percent to 118.75 yen, the biggest weekly decline since August 2013.

EUR

The good news for the European single currency was that it was able to rally versus the majority of its major currency counterparts. This is even though it lost some ground versus the Swiss franc. It seems that the euro was oversold in previous trading weeks, prompting traders to go long on the euro in the past several trading days. Traders are hoping that the euro will continue going higher in the week ahead, so open weekly Calls.

JPY

The Japanese eyen saw its best week in 16 months, as the slump in oil prices sparked demand for the Japanese yen. Moreover, the yen was very much oversold in previous trading weeks. In fact, traders were able to buy the Japanese currency on the cheap. Also, the yen was able to surge due to the higher demand for some haven currencies. The most notable weekly gains for the yen were capped versus the greenback. There were also important advances versus the Russian ruble.

Stocks/Indices

We saw a lot of volatility when it came to global stocks. U.S. equities saw the worst week of losses since 2011. With oil price sliding into the abyss during the trading week, traders felt it was best for them to take out their profits and go short on American stocks. The Dow Jones binary option tumbled 1.8 percent. The S&P 500 Index fell 3.5 percent, its worst performance in over two years.

It is clear that the fall in oil prices is driving the way stocks are moving. The selloff picked up steam in the financial hours of trading on Friday, helping equities cap very big losses.

Financial traders will be cautious about making big investments in the coming days of trading.

Commodities

Crude Oil

Crude oil futures tumbled more than four percent at the end of the trading week, while the commodity also made very big losses earlier in the previous week of trading.  This all came as the International Energy Agency cut its demand forecast for the fourth times in five months. Crude dipped by a massive 12 percent during the week that just passed, showing just what a lack of confidence traders have in the black gold now.

Gold

There was a fall in gold prices from the middle of the trading week, as the demand for gold slumped as a hedge against higher consumer costs. Note that crude oil tumbled, playing into the weaker gold prices. It is important to take into account that gold futures will take another hit once the coming week’s trading session commences, so get ready for this.

Wild Card

Crude Oil

We have chosen crude oil as the commodity to ditch as soon as Monday’s trading session gets going. Weekly Call options are likely to bring high returns, as traders are of the view that selling is where the action is at.

 

U.S. Stocks Surge for Fifth Week on Economy, Surplus

23.11.14

U.S. Stocks Surge for Fifth Week on Economy, Surplus

Currencies

USD

The dollar gained some considerably ground during the trading week that just passed. Traders have poured a lot of money into equities and indices in the past several weeks due to the very high returns which are in it for them. It is evident that the dollar is very strong, and more strength will lie ahead for the U.S. currency. The thing is that the American economy has been improving notably in recent months, which has in turn lent the greenback a helping hand. Moreover, there has been a slowdown in the British, Chinese and Eurozone economies. To top this off, the by-election win of UKIP in Britain will lead to a further selloff of the pound and much higher demand for the U.S. dollar.

EUR

The euro ended sliding by the most in a year versus the yen at the end of the trading week. This came as the head of the European Central Bank Mario Draghi stated that there will be broader asset purchases. The euro reached its lowest level versus the yen since June 2013. In addition, the European single currency slumped versus a basket of other currencies amid traders foreseeing the ECB boosting stimulus measures to increase inflation in the Eurozone.

JPY

The Japanese yen tumbled to a seven-year lower versus the U.S. dollar after Japan’s Prime Minister Shinzo Abe announced early elections. The reason why he did this was in order to get a mandate for additional monetary stimulus. All of this has happened as the nation has entered into a recession. In addition, the BOJ has warned that inflation may slip below the one percent level before the end of the month. Therefore, the sooner the elections are over, the fewer burdens there will be on the yen.

Stocks/Indices

Stocks surged for the fifth straight trading week on more signs that the U.S. economy is improving. Moreover, the gains were in large part owed to the news that global central banks from China to Europe will go ahead with some additional stimulus measures. In turn, this led to many U.S. indices and stocks to rise to their highest ever level.

With oil jumping for the first time in eight weeks, this resulted in raw-material and energy stocks making some very important gains.

For the five days ending Friday there were gains of 1.2 percent to 2,063.50 for the S&P 500. The Dow Jones Industrial Average added 1 percent to 17,810.06

Commodities

Crude Oil

The crude oil binary option was able to make some very important gains during the trading week. Investors were in favor of going long as U.S. stocks and indices finished trading on Friday at an all-time high. This was largely owed to the improving American economy, and due to the fact that prices are undervalued. More gains are very likely for the commodity in the coming trading week, so get ready to go long.

Gold

We saw the gold binary option jumped to a three-week high on Friday. This came after China cut interest rates to support economic growth. This boosted the demand for precious metals as a store of value. The commodity has surged six percent after sliding to a four-year low on November 7. Traders foresee additional gains in the days ahead.

Wild Card

Dow Jones

For those of you who have been trading the financial markets closely in the past few weeks will have seen the Dow Jones make very important gains. As long as U.S. economic data improves, this will lend the Dow Jones further strength.

 

Pound Drops Most in 20 Months

16.11.14

Pound Drops Most in 20 Months

Currencies

USD

We have seen much eventfulness when speaking of the U.S. dollar in recent trading days. The greenback surged to a seven-year high versus the yen on reports showing a jump in consumer confidence and retail sales, indicating the momentum of economic growth in the U.S. economy is gaining strength. In addition, the USD/JPY pair climbed by 0.5 percent on Friday alone, while reaching the 116.82 yen level at one point, the highest it has been for seven years. This shows just how confident traders are. Weekly Call options for the USD/JPY are the way to go in Monday morning trading.

GBP

We saw the pound sterling slide against the euro by the most in 2 months during the trading week that just passed. This came on assessments by the Bank of England of the nation’s economic growth in the year ahead, meaning it is less likely that rates will be raised in the year ahead. This is in contrast to what was previously thought. In addition, the pound sterling touched a 14-month low versus the greenback at one pound last week.

JPY

The yen tumbled for a fourth straight week versus its major currency counterparts. This has come on Shinzo Abe calling for early elections, increasing the likelihood of there being additional stimulus. We saw the yen slide to its lowest level in seven years before the Bank of Japan meets next week. Traders were also surprised by additional stimulus at last month’s meeting. It seems the yen will slide even further in the coming days of trading, so be very aware.

Stocks/Indices

The good news is that U.S. equities jumped for the fourth straight trading week. Investors felt that it was time for them to go long yet again as there were positive signals coming out of the American economy. The economic data published showed an improvement in consumer confidence figures. In addition, the unemployment rate is below six percent, as more employers are hiring workers.

It is actually important to take into account that the week’s gains were not great, signaling that there may be a slowdown in market movement. However, we will need to see the way stocks and indices moved in the U.S. during Monday’s session.
Commodities

Crude Oil

There was weakness for the crude oil binary option for much of last week, but it was able to gain by nearly $2.00 on Friday. The fact is that there was a string of positive data which came out of the American economy on Friday and a stock market rally. Therefore, the gains which we saw at the end of the trading week were not a surprise. In addition, more gains may be on the cards this coming week.

Gold

It was the case that the gold binary option was weaker for the first half of the trading week. The thing is that the hot commodity was able to post its biggest two-day gain on Thursday and Friday since June. Therefore, investors should get ready to open Call options when they get the chance.

Wild Card

Gold

The current price of gold is lower than it should be, meaning that we could see the commodity build on its current value. This means that as a trader, you should start going bullish on the commodity as soon as Monday’s trading gets going in order to make maximum returns.

 

Dollar Caps Third Week of Gains

Dollar Caps Third Week of Gains
Currencies

USD

There was a third straight week of gains for the U.S. dollar after the European Central Bank pledged additional monetary stimulus following Japan doing the same. In addition, with the Federal Reserve moving ahead with higher interest rates, this has really lent the dollar a helping hand. It is important to take into account that the dollar’s gains were cutback on Friday after the U.S. added fewer jobs than was forecast. The good news is that the dollar touched a year high versus the euro in the week that just passed. The dollar is likely to continue making inroads into the yen and the euro in the week ahead.
JPY
The yen tumbled to a seven-week low versus the dollar recently. However, it is expected to bottom out next week, as the yen is seen as oversold. What we did actually see is the yen make some important inroads into the U.S. dollar at the end of last week’s trading session. The truth is that the Bank of Japan has continued to go ahead with some very aggressive stimulus measures and Japan’s public debt is 250% of GDP. Therefore, even if the yen makes gains next week, these would only be short term, and not medium or long term.

CAD

The loonie ended on a positive in the latter part of last week. This came about after another the release of some very positive jobs data from the Canadian economy. In fact, the nation’s unemployment rate dipped to its lowest level in six years. The currency jumped versus the majority of its 31 major currency counterparts. However, officials on November 3 pointed out that the nation still needs stimulus to give the economy a big boost. When that happens, we may see the loonie go lower.

Stocks/Indices

We did see U.S. stocks surge to their highest ever level this week, and the same was the case for the most traded indices. With big banks and average traders investing and having a lot of confidence in the financial markets, the gains which we are seeing to the moment are no surprise.
All of this came as employers hired fewer workers than was forecasted. The thing is that the unemployment rate in American dipped to its lowest rate in six years. This added to the speculation that the U.S. economy is withstanding an overseas slowdown. Trades hope for additional gains this upcoming trading week.

Commodities
Crude Oil

The crude oil binary option took a big hit during the week that just passed. The positive news is that it was able to make a mini comeback on Friday. What helped the commodity at the end of the trading week was the unemployment rate dipping in the U.S. It will be interesting to see which way the commodity will go in the next few days of trading.
Gold
The gold binary option made some very important gains during Friday’s trading session. However, it declined for much of the trading week. The fact is that the yellow metal was oversold for much of the trading week, so the gains made on Friday for much of Friday. Look to go long on Monday as a bullish comeback is 100% on the cards.

Wild Card
Dow Jones

The Dow Jones was able to make some very important gains during the week that just passed. There will need to be a lot of positive data published from the news wires throughout the coming trading week. Therefore, open weekly Call options on Monday in the Dow Jones on Monday.

Titan Trade Weekly Analysis 02/11/2014

Titan Trade Weekly Analysis 02/11/2014

U.S. Indexes Hit Record

Currencies

GBP

We saw the pound sterling decline for a second trading week versus the greenback, and dropping for the fourth straight week.  The slowing U.K. economic recovery led traders to the conclusion that the rate rise in the U.K. will end up being later than was originally thought. In fact, the sterling has seen the longest losing streak vs. the greenback since March 2010. We saw mortgage approvals in the U.K. slid for the third month in a row. In addition, house-price growth slowed in October. The pound sipped by about 0.6 percent versus the dollar last week. However, the sterling surged for the second straight trading week versus the euro.

JPY

The Bank of Japan has decided to go ahead with yet another round of stimulus, which will in effect end up really hurting the yen. The USD/JPY forex pair surged by a whopping 2.84 percent alone on Friday, showing how bearish traders are on the yen following the decision by the BOJ. The purpose of the stimulus is to trigger two percent inflation in two years. Leaders in Japan are still worried about deflation, so they are prematurely trying to produce inflation. It will be interesting to see how much lower the JPY will go against its peers this coming week.

CAD

There was a lot of weakness last week when it came to the Canadian dollar. This came about as the nation’s economy shrunk, showing that there is little reason to buy into the loonie as of now. In fact, the currency tumbled the most since 2011 showed the economy shrank for the first time in August this year. This increased the bets that the BOC will increase rates much later than the Fed. Therefore, look to di1tch the loonie in the coming trading week.

Stocks/Indices

It was great to see that U.S. stocks surged during the week that just passed. This is largely led to the news that the Fed announced the end to QE, meaning that the economy is in very good condition. In reality, inflation figures for the previous quarter came out much better than was expected, which led to a run in the top U.S. stocks and indices.

Therefore, U.S. equities surged for both the week and the month, returning to record highs. The economic data and company earnings exceeded expectations, so it was no surprise that there was so much confidence among traders when speaking of risky assets.

Commodities

Crude Oil

We have seen the crude oil binary option cap is longest run of weekly losses since 2002. It has capped its sixth weekly losses in a row, as traders have opted for other assets. In addition, OPEC increased production to a 14-year high. It is forecasted that supply will continue to go higher, which will result in prices sliding further in the next week of trading.

Gold

The gold binary option tumbled with silver to the lowest level since 2010. There are a number of reasons for the slide during the previous trading week. The much stronger dollar has really hurt metals in recent trading days. In addition, investors have dropped haven metals in favor of risky equities. Much of the same is likely as the trading week takes off on Monday.

Wild Card

Gold

One of the most bearish commodities these days is the gold binary option. Investors have decided to go short due to the much stronger dollar and a lack of demand for haven metals. More weakness may be on the cards this coming week, so open weekly Put options on Monday morning.

Upcoming Japanese Data to Drive the USD/JPY Pair

26.10.14

Upcoming Japanese Data to Drive the USD/JPY Pair

Risk aversion allowed the safe-haven US dollar and the lower-yielding Japanese yen to regain ground against most of its forex counterparts, as global growth concerns weighed on sentiment. Euro zone data continued to disappoint, reminding market participants that a recession is likely to take place and hurt economic performance in its trade partners.

In particular, the BOE minutes highlighted the potential risks of a euro zone slowdown and the upcoming central bank events this week should show how other policymakers are assessing the situation. These top-tier events include the FOMC statement, RBNZ decision, and BOJ policy announcement.

During their previous statement, the FOMC shifted to a less upbeat stance, as Fed Chairperson Yellen downplayed the likelihood of seeing an interest rate hike next year. In fact, a few Fed officials even suggested delaying the end of the taper program until the end of the year. Bear in mind that the US central bank is set to end stimulus in this week’s rate statement, trimming asset purchases by the final $15 billion. Should they decide against this, the US dollar might wind up erasing its latest gains.

Meanwhile, the RBNZ is expected to sit on its hands and refrain from announcing any monetary policy changes. Analysts project that this wait-and-see stance would be sustained possibly throughout 2015, as the New Zealand economy is still dealing with the effects of falling commodity prices, particularly in the dairy sector. Apart from that, the RBNZ might also follow suit with other major central banks and express concerns about global inflation and the potential euro zone recession.

As for the BOJ, policymakers are still widely expected to retain their cautious assessment of the Japanese economy but stop short of confirming that more stimulus is necessary. After all, there have been a few signs of improvement in Japan, particularly in the trade and manufacturing sectors. However, should the BOJ also give a more dovish statement just as most other central banks are doing, yen pairs might start to resume their climb.

Other major events lined up for the week include euro zone reports, most of which are slated to show disappointing figures. This could keep the euro weak against most of its forex counterparts throughout the trading week, as traders continue to price in expectations of further ECB easing.

Germany will release its Ifo business climate reading and possibly show another decline, which would reflect weaker confidence. CPI readings from the large euro zone economies, such as Germany and Spain, should also have a say in euro price action. Bear in mind that deflation is starting to emerge as a global concern, with some central banks aiming to weaken their local currency in order to spur price pressures. The euro zone flash CPI estimates are up for release towards the end of the week and this might seal the deal on whether or not further ECB easing might happen.

GDP releases should also dominate forex market price action, particularly among the dollar pairs. The US will release its advanced GDP figure for Q3 2014 and possibly confirm if economic performance did pick up in the period. Recall that the previous quarter’s GDP reading was upgraded from 4.0% to 4.6% so it’s likely that a bit of correction might be seen.

 

More data from Japan is due and this should show if the economy indeed recovered from the sales tax hike. Policymakers had been confident that Japan would see a strong rebound in Q3, eliminating the need for BOJ stimulus. If the CPI, household spending, retail sales, and jobs data confirm this, the yen might be in for a stronger rally.

 

Yen Set to Continue Surging on Forex Market Correction

19.10.14

Yen Set to Continue Surging on Forex Market Correction

Forex price action has mostly been dominated by risk-off moves in the past few trading days, as weakening inflationary pressures and concerns on the Ebola outbreak have dominated newswires.

In the UK, annual inflation fell to record lows, as the headline CPI for September fell from 1.5% to 1.2% while the core CPI dropped from 1.9% to 1.6% – farther from the central bank’s 2% inflation target. This was enough to convince traders that the BOE might not be able to hike interest rates early next year, for fear of dragging price levels much lower.

In China, the headline CPI dropped from 2.0% to 1.6%, dragged down mostly by falling commodity prices. This has been spurred by overcapacity and the downturn in global demand, posing risks to production and employment in the world’s second largest economy. This comes after the IMF recently decided to downgrade global growth forecasts, citing the increased likelihood of a euro zone recession and a slowdown in economic output from Japan.

Weaker than expected consumer spending data in the US also contributed to the run in risk aversion, as both headline and core retail sales figures missed expectations. The headline figure marked a 0.3% decline while the core version of the report showed a 0.2% drop, indicating that the economy hasn’t fully recovered yet. This provided support to the Fed’s more cautious stance, also reminding market participants that the US central bank might not be able to tighten monetary policy soon.

Meanwhile, the dairy auction in New Zealand showed green shoots, as prices picked up by 1.4% and put an end to the recent streak of losses. Commodity currencies barely drew support from this release though, as further signs of weakness are anticipated. The Bank of New Zealand even decided to downgrade Fonterra milk payout forecasts to farmers and suppliers.

Global equities were mostly weaker in the past few days, as shares of companies in the airline and tourism industries were hurt by the worsening Ebola outbreak. Several world leaders have already expressed concern about the potential repercussions of this epidemic on the global economy.

In Japan, the BOJ was unable to meet its bond-buying target of 3 trillion JPY this week. This indicates that the central bank is facing a tough challenge in boosting liquidity, suggesting that other policy moves might need to be explored in order to keep growth afloat.

Euro zone economic data has been weak as usual, with the German ZEW index dropping to negative territory and the region’s ZEW economic sentiment figure tumbling from 14.2 to 4.1. This suggests dimmer prospects for the region, as many analysts predict that a recession is bound to take place within the next six months

All in all, the US dollar was generally weaker despite the pickup in risk-off flows, with the currency giving up gains to the yen and the Swiss franc. Perhaps the latest shift in the Fed’s monetary policy bias is still hurting the safe-haven currency but it remains to be seen whether the safe-haven flows could allow the Greenback to resume its climb or not.

The Japanese yen was significantly stronger, erasing most of the losses it chalked up in the past quarter. After all, the BOJ has adamantly refused to admit that the economy needs further easing, with a potential pickup in Q3 performance likely to seal the deal and convince traders that Japan is in recovery mode. European currencies are slightly weaker, as the pound is grappling with the BOE’s less upbeat tone and reconciling it with the latest round of weak data. Commodity currencies have mostly been moving sideways.

Dollar Rallies Longest in Four Years

Dollar Rallies Longest in Four Years

05.10.14

Currencies

USD

The dollar has capped its longest string of gains in four years. With there being important positive jobs data that has come out of the U.S. economy, this has turned out to boost the U.S. dollar yet again. We saw the U.S. currency jump notably versus all of its 16 main currency counterparts. This has come following data showing that U.S. companies added more workers than forecast during the previous month of trading. In fact, the unemployment level fell to the lowest level since 2008. It seems that the Fed likes the unemployment rate, and may lead it to increase interest rates sooner rather than later in 2015.

GBP

The pound ended up making some very big losses yesterday versus the dollar. Traders have decided to ditch the GBP/USD forex binary option not really due to pound weakness, but due to greenback strength. What we did see that pound sterling make its biggest loss versus the U.S. dollar in 15 months. This shows just how much volatility in the forex market as of late. More losses may lie ahead for the sterling if the economy slows down.

CAD

We ended up seeing the loonie make some very big losses at the end of last week’s trading session. The Canadian dollar fell to a six-month low versus the greenback on an unexpected trade deficit posted in August. This seems to support the BOC’s cautious outlook on the Canadian economy. The good news for the loonie is that it was able to make some important inroads into the Aussie and the kiwi. This is after data showed the jobless rate in the U.S. tumbled to a six-year low. The Canadian dollar may make a bullish comeback against the dollar during Monday’s trading session.

Stocks/Indices

We have seen so much volatility for European and U.S. stocks in previous trading weeks. One good thing to say is that European stocks ended last week’s trading session on a high. In fact, European equities surged from the biggest selloff in 15 months. It seems that the positive U.S. data resulted produced a bullish comeback.

The Stoxx 600 Index added 1 percent on Friday, but actually slumped a whopping 2.4 percent on Thursday. The FTSE 100 Index advanced 1.3 percent and France’s CAC 40 added 0.9 percent.

The positive news sit hat EasyJet added 6.4 percent ton Friday. Also, there were big gains for a number of other leading shares. The drop for Tesco is set to continue in the week ahead.

Commodities

Crude Oil

One of the most exciting commodities to gain at the moment is the crude oil binary option. The commodity is headed on a bear market on supply. In fact, the WTI has slipped below $90, as OPEC members are unsure at which rate to put output. What is more, it is thought that current supplies are more than enough for the expected falling demand for crude oil. In order to make maximum returns from the commodity next week, then go short in Monday morning trading.

Gold

The gold binary option has erased its 2014 gains, as traders pour their money into the greenback. The reason why traders have ditched the yellow metal is after the release of some very positive economic data from America. This was the improved jobless claims data. Investors are of the view that there will be additional losses in the next few trading days.

Wild Card

Gold

With there being a big case for selling gold, look to open weekly Put options once the upcoming trading week gets going.

Light at the End of the Tunnel for U.S. Stocks on Friday

Light at the End of the Tunnel for U.S. Stocks on Friday

Currencies

USD

There has been so much strength for the dollar both in the past week and month. In fact, the greenback is headed for the best monthly gain in two years on reports showing that an improving American economy adds to the forecast that the Fed will increase interest rates in the first half of 2015. It is important to take into account that rates are set to be raised in the U.S. much faster than in the Eurozone or in Japan. The dollar has been able to jump to its highest level in 22 months versus the euro prior to the ECB meeting on October 2.

GBP

It was great to see that the pound sterling was able to jump to its highest rate in two years versus the euro during last week’s trading session. The GBP jumped for the second week in a row versus the euro. This came as the Bank of England moves towards raising interest rates. All of this has come amid the slower growth in the Eurozone where stimulus is expanding notably.

EUR

The European single currency was one of the biggest losers during last week’s trading session. Investors simply felt hat they should take their money out of the euro for a number of important reasons. One of these is due to the Eurozone going ahead with some very aggressive stimulus measures. In addition, the growth rate is negative in a number of countries in the region. Therefore, the weakness which we have seen for the EUR is not a surprise. There was weak economic data published from Germany, while manufacturing n the Eurozone slowed last month. Therefore, investors may want to go short on the EUR for another trading week.

Stocks/Indices

There was light at the end of the tunnel when U.S. stocks gained during Friday’s trading session. The thing is that they tumbled last week as a whole. Thursday saw the worst day since July for U.S. equities, but at least the week ended on a positive note with the S&P 500 Index surging the most in five weeks. This came amid corporate earnings topping forecasts. In addition, economic data showed the fastest growth since 2011.

The S&P 500 slumped 1.4 percent during last week’s trading session. The Dow dipped 1 percent last week as a whole.

It is important to take note account that the S&P 500 has dive 2.3 percent since hitting a record high on September 18.

Commodities

Crude Oil

There was positive news for crude oil, as it was able to cap its biggest week of gains in a month. This came on the forecast that stronger U.S. economic growth will increase demand for the energy. Economic data showed that the U.S. economy expanded notably in the second quarter of the year. U.S. GDP grew at a revised 4.6 percent annual rate in the second quarter, up from the previous forecast of 4.2 percent. Traders are hoping for more gains with crude in the coming days.

Gold

Gold dropped notably last week on the news that the U.S. economy expanded at the fastest pace since 2011. With there being more demand for the greenback and riskier assets at the latter part of last week’s session, it is only natural that traders will go short on haven gold. Weekly Put options will be the way to go on Monday.

Wild Card

S&P 500

Traders may want to open weekly Call options in the S&P 500 after the gains it was able to make on Friday.

Asian Stocks Decline for Second Straight Trading Week

Asian Stocks Decline for Second Straight Trading Week

Currencies

USD

The dollar has seen its longest rally since 1967. This comes as the Federal Reserve is set to raise interest rates next year, while other leading central banks push ahead with additional stimulus plans. The U.S. Dollar Index jumped for the 10th straight trading week. The Fed is one of the two central banks which is set to go ahead with raising interest rates in 2015. Therefore, traders have priced this into the market, and are very bullish on the greenback at the moment. The U.S. Dollar Index jumped by a whopping 0.6 percent. More gains may be on the cards for the dollar in the days ahead.

GBP

The pound rose to its two year low at the end of last week. This comes following the Scottish no vote. The pound was able to jump to a two year high versus the euro. This has cut concerns the BOE will delay raising interest rates. In addition, the sterling jumped to its highest level in two weeks versus the greenback. Traders feel that the pound’s gains will be compounded in the upcoming trading week.

CAD

The Canadian dollar was one of the biggest winners last week.  The gains for the loonie came as the inflation rate rose faster than forecast. Inflation rate is at its highest level in two years. It seems that as the U.S. dollar is climbing, this has really lent the loonie a helping hand. There will be a lot of economic data published from the nation’s economy throughout the upcoming trading week. Therefore, traders should get ready to look over how the CAD has behaved in the past few trading weeks. This will help you make informed decision in the next few days of trading.

Stocks/Indices

Asian stocks dipped for the second straight trading week, despite climbing on Friday. The thing is that the Asian equity rally on Friday was driven by the weaker yen and the slide in U.S. jobless claims on Thursday. Among the biggest gainers were Honda Motor Company and Alacer Gold Corp.

On Friday, the MSCI Asia Pacific Index added 0.3 percent, but declined around 1 percent this week. The thing is that Friday saw Japan’s Topix Index advance 1.1 percent. South Korea’s Kospi Index climbed 0.3 percent.

There is a lot of optimism in the financial markets at the moment, despite Asian shares sliding for the week as a whole. Therefore, look for there to be gains in Asian stocks this upcoming trading week.

Commodities

Crude Oil

It was unfortunate to say that the crude oil binary option was hit hard this week. It slid for the last three trading days of the week, as traders decided to put their money into alternative assets. The rise in the U.S. dollar and an increase in crude oil inventories is something which has really driven crude prices lower lately. Stockpiles advanced last week for the first time since August 8, and traders feel oil prices will continue heading lower.

Gold

We saw gold take a beating in recent trading days. It fell to its lowest price in eight months, as traders followed how the dollar surged to its highest level in a long time. What we also saw was U.S. equities surge to a record, driving down the demand of haven assets. More of the same is likely during the upcoming week.

Wild Card

Dow Jones

With the Dow Jones going higher and higher, expect it to build on its gains as the trading of the coming week gets going.