Gold Eyes Weekly Slide on Fed Tapering- 02/05/2014



We are seeing a lot of strength for the greenback this morning after it was able to make some very impressive gains in previous trading sessions. The GBP/USD forex binary option is lower as of now by 0.05 percent at the $1.6884 level. Traders just feel that it is worth it for them to go long on the U.S. currency this morning, as it is seen as somewhat. With the Fed going ahead with tapering yet again, the advances we are seeing for the dollar are not a surprise this Friday. More gains may lie ahead for the greenback, so be prepared.


The euro has been one of the most bullish currencies during the current trading week, as the debt crisis in the region seems to be on the back of traders’ minds. However, this may be a mistake, as it could get worse in the future. The thing is that there is a lack of demand for the euro today. The EUR/USD forex pair is higher as of now by 0.06 percent at the $1.3859 level.


It is true that the pound is down versus the dollar this morning. The thing is that it has been able to hold its ground versus a number of its other peers. The pound sterling surged to its highest level in more than four years versus the dollar yesterday. This came about as manufacturing data from the British economy came out much better than was expected. Therefore, we may end up seeing a comeback for the GBP/USD pair this Friday afternoon.



U.S. stocks closed almost unchanged as a whole yesterday. This came about as investors were more focused on the job data which is expected to be released Friday afternoon. There was also an increase in jobless claims on Thursday, which results in the Dow Jones diving from a record high.

The Federal Reserve revealed on Wednesday that it will continue the tapering, as the U.S. economy shows big improvements. This is despite slow improvement in the first quarter of 2014.

It is important to take into account but American applications for jobless benefits rose to a nine-week high, which shows under the services there are still big problems with the U.S. economy.

Facebook Inc. climbed 2.3 percent to the $61.15 level. Linkedin Corp. saw a surge of 2.3 percent to $61.15.



Crude Oil

The crude oil binary option is trading higher this morning by 12 cents at the $99.54 level. The reality is that the commodity has not performed well this week, and has been unable to surge above the $100 mark. There are just so many factors pushing the black gold lower these days, which is why you will want to be very cautious. However, bullishness is set to be on the cards today.


It is the case that the gold binary option is higher this morning. The thing is that traders have decided to ditch the yellow metal for much of the current trading week. This is due to there simply being a lack of demand for haven assets. In addition, leading banks foresee the commodity to dive further in the weeks and months ahead. Therefore, you will want to be very cautious while trading gold today.


Wild Card

S&P 500

It was the case that the Dow Jones made losses during yesterday’s trading session. The thing is that traders decided that it was time for them to go long on the S&P 500. Even though the job figures were weak yesterday, bullishness may be on the cards this Friday.