European Stocks Cap an Important Week of Gains

European Stocks Cap an Important Week of Gains

Currencies

USD

The dollar has been one of the biggest gainers in recent trading weeks. In fact, the dollar has capped the longest streak of gains versus the euro since 2012 on the forecast that the Fed will increase interest rates sooner rather than later. In addition, economic data form America has turned out to be very positive such as better than forecast jobless claims. The dollar has made important gains versus the shekel and the pound during the week that just passed. Therefore, traders will be looking to go bullish once Monday morning trading gets going, so you may want to get in on the action.

GBP

The pound sterling tumbled for the 7th straight trading week against the dollar, the longest losing streak since the 2008 economic crisis. This comes as U.K. inflation quickened less than analysts originally forecasted. This reduced bets that the BOE will increase rates. All of this comes after sterling was capping an impressive rally two month’s ago, showing just how quickly things can change when speaking of the forex market. It seems that the previous forecast of a rise in U.K. rates was overdone, and now the market is correcting itself. Therefore, traders should be cautious while trading the pound.

AUD

The Australian dollar has surged 4.5 percent versus the U.S. dollar so far this year. This is the most among the major currencies. The AUD/USD forex binary option jumped Friday alone by 0.14 percent to the 93.16 U.S. cents level. Traders are hoping that there will be more gains for the AUD/USD pair in the week ahead. With Australia’s economy improving rapidly, such an eventuality would not be a surprise at all.

 

Stocks/Indices

We saw stocks in Europe drop on Friday, but surged last week as a while. The reality is that European stocks were able to a record their biggest weekly gain in six weeks, which is a sign that traders are very much willing to take some big risks at the moment.

What did put some downward reassure on regional equities during Friday’s trading session is that traders just felt that they should look to ditch equities at the end of the week that just passed due to the rising tensions in Gaza and Ukraine. Also, there is a fear that stocks in Europe may be somewhat overvalued, so the losses we saw during Friday’s trading session were not a surprise.

Investors are hopeful that there will be big gains for European equities in the coming trading days.

 

Commodities

Crude Oil

We saw crude oil cap its fifth weekly drop on demand outlook. This is the longest losing streak in nine months, coming on concerns that refineries will reduce demand for oil amid the end of summer season approaching. In addition, gasoline demand tumbled to a two-month low. Traders should look to ditch the black gold in the week ahead in order to make maximum returns.

Gold

There has been a lot of volatility with the gold binary option in recent adding weeks. The good thing is that it was able to climb notably on Friday. It jumped $6.30 s there was a lot of instability in the financial markets. Moreover, there is still uncertainty about the future of the U.S. economy, so traders will need to take this into account.

 

Wild Card

GBP/USD

We have seen a lot of weakness for the GBP/USD fore pair for the past two months nearly. More bearishness may be on its way in the week ahead, so look to ditch the pair.