Gold Eyes Longest Weekly Rally on Demand- 11/07/2014

Currencies

USD

The dollar capped very big losses versus the yen so far this trading week. This comes before Fed head Janet Yellen testifies before lawmakers next week. The dollar has slumped for its fourth week out of five versus its major currency counterparts. This is as there are mixed signs about the health of the U.S. economy and the so called interest rate rise may take another year. This shows that policymakers are not so confident when speaking about the health of the American economy. The dollar has slumped versus the loonie and the cable in the latest round of trading.

AUD

There has been a lot of weakness when speaking of the Aussie in the latest round of trading. The AUD/USD forex binary option is trading higher by 0.05 percent at the 0.9389 U.S. cents level. Traders are of the view that the Aussie is somewhat overvalued, so the weakness we are seeing for the Australian currency at the moment is no surprise. Investors should look into opening daily Put options in the AUD/USD currency pair this morning.

JPY

There have been a lot of gains when speaking of the yen during the current trading week. The JPY surged for a second day against the EUR this morning as the banking situation in Portugal has become very volatile. This shows just how bad the economic station around southern Europe is. Investors are of the view that they should ditch the euro and buy into the yen. Therefore, expect the EUR/JPY to slump in the next few hours of trading today.

 

 

Stocks/Indices

There were big losses when it came to American stocks during yesterday’s trading session. It has been a very mixed week when it came to U.S. equities this week. The demand for risky assets such as stocks slumped, while that for haven assets increased. This came on the Portugal banking crisis. You will need to take this into account while trading U.S. stocks and global assets during today’s trading session.

The Dow Jones binary option is trading lower this morning by 0.42 percent at the 16,915.07 level. The S&P 500 has made losses o 0.41 percent at 1,964.68.

Traders are of the view that it is better for them to be cautious in the hours ahead, so you may want to do the same.

 

Commodities

Crude Oil

The crude oil binary option is trading higher as of now by about 33 cents this morning. The commodity is headed for the third straight trading week. This comes as Libya boosted crude output and gasoline stockpiles surged in the U.S.  The increased production in Libya from the two ports has put a lot of downward pressure on crude oil prices, according to experts. Look for the commodity to go even lower as the day drags on.

Gold

Gold futures are lower this morning by around $1.70. Investors have decided to go short on the commodity as the dollar has held its strength this Friday morning, despite sliding in previous trading sessions. The gold binary option is headed for tis longest weekly rally since March. This comes on the concerns with regards to the European debt crisis is worsening Therefore, opening weekly Calls this may be the way to go in spite of the weakness this Friday morning.

 

Wild Card

Crude Oil

For those of you have who have gone short on the crude oil binary option during the current trading week will be very happy. This is because the commodity has continued to dive into the abyss. When you get a free chance, look to go short today.