Gold Dips as Traders Prefer Risky Assets this Morning
The greenback was weaker not so long ago, but is starting to gain ground to a certain extent in the latest round of trading. This is as there are fears that there will be a weakening global economy in the near future. The GBP/USD pair is lower at the moment by 0.18 percent at $1.6276. With the U.S. expected to cut stimulus even further in the months ahead, traders have put their money into different currencies. The dollar may gain notably in the hours ahead.
The yen recently touched a two-month high against the dollar. This came before a report tomorrow that is expected to show that growth slowed down. This prediction increased the demand for the safe-haven yen. With Japan’s Nikkei 225 Stock Average Index sliding the most in eight months, this increased the demand for the yen even further. The USD/JPY currency pair recently touched 100.76 yen, the lowest level since November 21.
The AUD/USD currency pair is trading much higher as of now by 1.59 percent at the 88.92 U.S. cents level. It is a relief to see that there is so much confidence in the pair this morning. The strength for the Aussie has come after the nation’s currency made some very big losses in previous trading days. The strength for the AUD has gained today after the Reserve Bank of Australia decided to leave interest rates unchanged.
The S&P 500 tumbled the most since June 2013 on U.S. and emerging market stocks went lower. This is the worst start to a year since 2009, as economic data from the U.S. to China continues to weaken. U.S. factory output expanded n America in January at its slowest rate in eight months.
The Dow Jones Industrial Average tumbled by 2.08 percent to the 15,372.80. The Nasdaq Composite Index fell 2.61 percent to 3,996.96.
Bank of America Corp. declined 2.39 percent to $16.35. Ford dived 2.74 percent to $14.55. A number of other leading equities also slipped.
Look for there to be a bullish comeback for U.S. equities today.
The crude oil binary option is trading higher today by 17 cents at the $96.60 level this morning. The leading commodity has being going higher since the beginning of today’s trading session. This comes on the forecast that crude oil inventories climbed in the U.S. It is expected that stockpiles climbed 2.25 million barrels last week. It is important to note that the black gold actually slumped on Monday on slowing U.S. manufacturing. Therefore, traders will need to be cautious if they intend on trading the crude oil binary option in the hours ahead.
It was good to see that gold was able to climb notably on Monday. However, the gold binary option is actually trading lower this morning by nearly $2, as traders prefer to put their money into riskier commodities. Moreover, there is a feeling that gold’s gains were overdone yesterday. As a result, you may want to open Put options in gold futures today if you want to make high returns from the financial markets.
Among the biggest losers when it has come to the markets lately has been the Dow Jones binary option. Traders have taken it upon themselves to ditch the leading American index as of late due to the weak figures that have come out of the American economy. We saw just yesterday that the index tumbled along with other widely traded U.S. indices. There could actually be a bullish comeback later.