Euro Surge Dominates Market Sentiment
The U.S. dollar seems to be one of the weakest currencies this morning. Traders have decided to sell the greenback, and put their funds into a number of other currencies. All of this comes after the weakness which we saw on Wall Street on Friday. It seems that the market has reacted positively. The dollar has lost ground versus the yen and the Aussie. Further losses are likely for the American currency.
The euro is trading at its highest level in seven weeks versus the dollar. This is as traders feel that it is worth it for them to go long on the European single currency as of now. The EUR/USD currency pair is higher this Monday morning by 0.15 percent at $1.3760. The euro is trading much higher versus the greenback and its other main peers this morning after data showed German consumer confidence unexpectedly rose in the most recent report.
It is good to see that there is a lot of bullishness for the British currency this morning. This is after it tumbled in the previous five trading days. The gains for the GBP have come this morning after Bank of England Governor Mark Carney reiterated the recovery package from the British economy. The GBP/USD forex binary option is trading higher at the moment by 0.33 percent at the $1.6669 level.
We saw a lot of weakness for U.S. stocks at the end of last week’s trading session. There were a number of reasons for this. Traders felt that the gains which we saw in prior trading sessions were overdone. Therefore, the losses we saw on Friday were not a surprise.
The Dow Jones Industrial Average tumbled 0.19 percent to the 16,103.30 level. The Nasdaq Composite index fell 0.1 percent to 4,263.41.
Bank of America Corp. dipped 0.06 percent to $16.29. Facebook Inc. made losses of 1.49 percent to $68.59.
There will be a good amount of economic data published from the news wires in the hours ahead, which may turn out to support American equities.
The crude oil binary option is trading lower this morning by 5 cents at $102.15. The commodity recently was even lower, as traders felt that the commodity was overvalued. However, traders have started to buy into crude again, as they feel that the cold weather in America will boost demand for fuel. The commodity advanced for the previous six trading weeks in a row. This has been the best winning streak in a year. Traders feel that there could be further gains once today’s trading takes off.
We have seen some very high demand and high prices for the gold binary option in recent trading weeks. It is trading higher this Monday morning by $9.80 at the $1,333.40 level. The gains are largely owed to the much weaker dollar. With traders taking their money out of the American currency, investors are willing to put their money into volatile assets. To make high returns today, going long on gold futures may turn out to be a good trade.
It has been unfortunate to see the Dow Jones get hit on Friday. Traders were just not in the mood to take risks when it came to the leading American index. Investors decided to put their money into alternative assets. Traders were worried over the state of the U.S. economy, which in turn led them to ditch leading indices. A bullish comeback may be in the cards during the U.S. session today.