Euro Drops to 14-Month Low
The strength of the greenback has led the sterling to make very big losses in the past few trading days. This is after the pound sterling was one of the strongest currencies in previous months The GBP/USD forex binary option is trading lower as of now by 0.04 percent at the $1.6323 level. Traders feel that there is more weakness on the cards for the cable, which is they have decided to go short. If you want to make the maximum returns during today’s trading session, then it may turn out that ditching the GBP yet again will bring higher returns.
We saw the European single currency fall to its lowest level in 14 months following the decision of the European Central Bank unexpectedly slashing interest rates. Rates were slashed to a record low of 0.05 percent, and at the same time there was the introduction of additional stimulus. The shared currency dipped against 31 of its major peers following the speech by Mario Draghi yesterday in which he stated that there will be bulk buying of asset-backed securities. The euro dropped nearly 2 percent versus the greenback yesterday, showing just what a lack of demand there is for the euro at the moment. Traders should be very weary while trading the euro during end-of-week trading.
One of the biggest losers as of late has been the Japanese yen, as we have seen it tumble to a six-year low versus the greenback. Traders just do not feel that they should risk putting their money into the yen at the moment due to the very big losses which this can amount to. The yen slumped versus the dollar after the head of Japan’s central bank stated that a bullish greenback was not necessarily a negative thing in Japan. Traders took this as a sign that it is a good idea for them to go long on the greenback and ditch the yen. Look for the USD/JPY pair to go even higher in the hours ahead.
We saw that U.S. stocks and indices end up making some very big losses yesterday. Traders just feel that going shot at the moment is where the action is at. In addition, prices are seen as very overdone, so you should make sure to follow all the data.
The Dow Jones Industrial Average dipped 0.05 percent to 17,069. The S&P 500 made losses of 0.15 percent to 1,997.65.
Apple Inc. slipped 0.83 percent to $98.12. Bank of America Corp. climbed 0.6 percent to the $16.11 level.
Crude oil futures are trading higher this morning by 21 cents at the $94.66 level. The commodity has soared this morning by 27 cents to $94.75. There is a lot of strength with regards to energies this morning. Traders just feel that it is the right thing for them to do by going long on the black gold due to the very high returns which it has to offer them. Traders may continue going long, as more gains are likely for crude oil futures.
The gold binary option has been going lower since the beginning of today’s trading session. It is currently lower by $1.30, and is trading at its lowest in 12 weeks. The gold binary option is headed for a weekly loss, as the dollar has gained a lot of vale on all fronts lately.
Look to open daily Call options in the gold binary option this morning if you want to make big profits today.