Euro Slides for Seventh Straight Trading Week
The pound sterling climbed to its highest level in eight weeks versus the euro. This was after the sterling showed a lack of direction in previous trading weeks. The pound’s strength versus the euro came on the speculation that the European Central Bank will add stimulus in the coming week, even despite the debate over a rise in British interest rates. In addition, the pound concluded its seven week slide versus the dollar. This was good news in showing that traders have a lot more confidence in the sterling. Therefore, look to go long on the sterling this Monday.
It was unfortunate to see the European single currency to slide for the seventh straight trading week. This came on slowing inflation prior to the meeting of the ECB in the week ahead. The losing streak for the euro is the longest stretch of losses for the EUR in more than a decade. In addition, the EUR fell to near its lowest level in a year versus the greenback, showing just what a lack of demand here is for the 18-nation currency at the moment. With ECB head Draghi on August 22 stating that inflation expectations in the region having fallen then look for the EUR to continue its slide.
One of the most volatile currencies at the moment is the Canadian dollar. It gained to its highest level in a month versus the greenback on a rebound in economic growth in Canada. In fact, economic growth climbed to its highest level in three years, which lent a lot of support to the CAD. Traders are of the view that the loonie will continue going higher in the week ahead, so opening weekly Call options in the CAD on Monday is the way to go
Asian stocks saw their first monthly decline since April, which was very unfortunate. The weakness came on investors weighing the ongoing conflict between Russia and Ukraine. What also played on the movement of Asian stocks has seen company earnings in the region.
Among the biggest losers were the MSCI Asia Pacific Index, Japan’s Topix Index, Hong Kong’s Hang Seng Index, South Korea’s Kospi Index added Singapore’s Straits Times Index.
There will be a lot driving global stocks and indices in the coming trading week. The U.S. economy expanded more than previously forecasted.
There will need to be more positive U.S. and other data in the next few trading days in order for there to be a bullish comeback for Asian stocks.
The crude oil binary option capped its first week of gains in six on the rapidly improving U.S. economy. It is expected that the bullish American economy will end up increasing fuel demand. The thing is that the price of the commodity rose from Tuesday to Thursday. In addition, there was a big improvement in U.S. consumer confidence figures, so go long on the black gold on Monday.
The gold binary option was hit very hard during the latter part of last week’s trading session. Investors simply did not feel that it was the right time for them to buy into the metal during last week’s trading session. It is likely that the gold binary option may continue losing ground in the coming trading days, so look to go short.
The good news is that the crude oil binary option went bullish at the end of last week. Look to go long again in the next few days of trading on the improving U.S. economy.