Euro Surges to the Highest Level
The greenback seems to be sliding on all fronts this morning. With there being so much confidence in the currency market today; traders have decided that it is time for them to sell the American currency. The biggest losses have been made versus the pound and euro. On other hand, the dollar has made inroads into the Swiss franc.
The European single currency has managed to climb to its highest level this month. There has been a return of risk appetite when it has come to the forex market in the past few trading days. With the leading economies from Germany to the United States releasing more positive data, this has turned out to boost havens. Therefore, we understand more clearly why the euro is stronger. The EUR/USD pair is trading higher by 0.07 percent at $1.3582.
The Canadian dollar has fallen to a two-month low versus its U.S. currency counterpart. Traders feel that it is worth it for them to ditch the loonie in order to profit. The reason for the weakness in the Canadian dollar this morning is the fall in the price of crude oil. Another reason for the strength of the USD/CAD currency pair is due to the forecast that the U.S. economy will grow faster than the U.S. economy in the next year.
We saw a lot of volatility when it came to U.S. stocks during yesterday’s trading session. Investors felt that it was worth it for them to take some risks. You need to understand that there were stocks which made losses. On the other hand, there were just as many that were able to climb.
The Dow Jones Industrial Average was nearly unchanged. The Nasdaq Composite Index surged past the 4,000 mark for the first time in 13 years.
Facebook made gains of 2.39 percent to $45.89. Alcoa climbed by 0.63 percent to $9.65.
Traders are hoping for more of a solid session in the U.S. this Wednesday afternoon.
The crude oil binary option is trading lower for a fourth straight trading day on advances on inventories data. Crude oil inventories rose for a ninth straight trading week. The commodity is trading lower this morning by 23 cents at the $93.45 level. There reality is that there are diverse factors driving down the prices of the black gold at the moment. Traders are of the view that there will be additional declines ahead for the commodity, so look into opening Put options this morning.
We saw some weakness when it came to gold during Monday’s trading session. However, many of its losses were cut in late trading. Gold futures have rebounded this morning by $11.45 to the $1,253.05 level. The strength today comes on the much weaker dollar and increased demand for the bullion from China. The reality is that traders still view the commodity as a touch undervalued, which is helping push it higher in the latest round of trading. Call options are the popular trade today.
One of the hottest currency pairs at the moment is the USD/JPY. The yen is one of the weakest currencies, which has enabled the greenback to make inroads into the yen. This has been the case since the early morning. Looking at the bigger procure, the pair has been surging in recent months. With the American economy outperforming other industrialized economies, this has lent the pair a lot of strength. It may be that the USD/JPY will build on its gains in the latter hours of trading.