Gold Dips as Dollar Rebounds
The U.S. dollar may be trading higher this morning, but it is headed for a weekly decline. This comes ahead of the payrolls data at 13:30 GMT. Traders should look to buy into the dollar this morning prior to the release. It is important to take into account that the dollar is volatile at the moment. This is why it is much stronger this Friday. The EUR/USD pair is lower by 0.05% at $1.3660.
Euro is rather mixed this morning, as investors are of the view that there are still risks in the markets. The euro has been able to make inroads into the British pound. On the other hand, it has not been able to rise versus the greenback. This is because the greenback is one of the most bullish currencies this Friday morning. It may be that the euro will be able to make important gains later on.
There has been a lot of weakness when it has come to the Canadian dollar in previous trading sessions. Traders felt like going short due to the view that the nation’s economy was weakening. However, with the surge in crude prices in the previous five trading sessions, it may be that the CAD will continue making inroads into the USD as the trading day passes by.
U.S. stocks tumbled for a sixth straight trading day. This is remarkable as they were able to make important gains during the previous trading week. Traders should not panic, as many shares were previously overvalued. Therefore, there is a gradual correction which we are seeing for a number of American stocks at the moment.
The Dow Jones Industrial Average made notable losses yesterday, but the S&P 500 Index was able to make some important gains.
Microsoft Corp made losses of 2.41 percent to $38.00. Bank of America Corp. dipped 1.28 percent to $15.43. Intel Corp. climbed 2.19 percent to $24.26 yesterday afternoon.
Crude oil is headed for its biggest weekly advance since July on U.S. economic growth. Also, the dollar has made some very big losses during the current trading week, which has worked out to lend the crude oil binary option a helping hand. The commodity is about level this morning after making some impressive gains prior to today. The commodity was also able to make important gains in previous sessions largely due to U.S. GDP rising by a 3.6 percent annual rate in the third quarter. More gains may be likely in afternoon trading.
Gold futures are lower this morning by about $5. Traders have decided to sell the gold binary option due to the stronger dollar. With the dollar gaining ground, traders feel that buying gold is not a viable option. Gold is headed for a weekly decline, as traders have preferred to put their money into alterative assets. There will be a lot of volatility amidst the release of U.S. economic data later today. The most important will be the non-farm payrolls. There may be a bullish comeback for gold later today.
The S&P 500 showed why it is one of the favorite assets among traders. It was able to climb yesterday, as investors feel that there may be additional gains in the days and weeks ahead. The fact of the matter is that the weakness which we have seen for leading American indexes recently have been slightly exaggerated. Look for the S&P 500 to go even higher in the coming hours of trading, so open Call options now.