Gold Caps Biggest Weekly Gain in a Month
The U.S. dollar ended up making some very big losses towards the end of the previous trading week. The greenback was highly overvalued, so traders decided that it was the perfect time for them to unwind their long positions in the USD. Moreover, there was a bullish comeback when it came to U.S. stocks during the latter half of last week’s trading session. Therefore, investors took their money out of havens currencies and put them into riskier ones.
There were big losses when it came to the British currency during last week’s trading session. The British currency declined for a second trading week versus the greenback after manufacturing data showed some weakness in the British economy. This increased the argument to keep British interest rates at a record low. Therefore, traders will look for higher yielding currencies to put their money into in the days ahead.
The loonie was able to advance for the second trading day on Friday. This was largely due to positive jobs data being published from the nation’s economy. This was after the CAD was weaker in the earlier part of the previous trading week. This shows just how quickly the situation can change each week in the forex market. The CAD gained versus 14 out of its 16 major peers last week as the nation added 29,400 jobs in January. On the other hand, the U.S. added fewer jobs than forecast.
U.S. stocks were able to record the best two-day rally since October on the improving economy. Traders also felt that equities were undervalued, so they found the perfect opening last week.
It is good to see that traders feel that despite the Fed going ahead with cutting economic stimulus, the economy is set to improve overall.
S&P 500 gained 2.6 percent on Thursday and Friday, giving it the best two-day gains since October.
Apple was one of the biggest gainers, but LinkedIn was one of the biggest losers. This shows just how much weakness there can be in some equities, even when there is an overall rally on Wall Street.
There was some weakness for the crude oil binary option during certain periods in the previous trading week. The good news is that the commodity closed above the $100 mark on Friday. With there being a stock market rally on Wall Street, the knock on effect was crude oil going much higher. There will be a lot of important economic data published in the week ahead. Therefore, look to go long on the crude oil binary option.
The gold binary option managed to cap its biggest weekly gain in a month last week. This was largely due to the U.S. payrolls data coming in much weaker than analysts had forecast. This is evidence of just how unpredictable the markets can be from week to week. It was good to see gold gain, as it has underperformed in recent weeks. Traders are hoping for gold to jump in the days ahead. Get ready to open your Call options in the yellow metal if you are up for making high returns.
There is a lot of volatility when speaking of the financial markets these days. The S&P 500 has slipped for the past three trading weeks. This was after this index managed to cap some important advances at the end of last year. The reality is that the S&P 500 is somewhat oversold. Look for the S&P 500 to make some additional gains during this coming trading week.