Gold Jumps More than $11 this Morning
There is a lot of volatility when it comes to the European single currency this morning. In fact, the euro is trading much lower versus the yen on news that French industrial production data came out negative. Moreover, with manufacturing stagnating, traders have taken the chance to ditch the EUR/JPY. The good news is that the EUR/USD forex binary option is trading higher as of now by 0.06 percent at the $1.3643 level. Also, the euro has made inroads into the pound today.
One of the most bullish currencies this morning is the Japanese yen. It has managed to gain after there was a stock market rally on Wall Street during Friday’s trading session. The strength comes as the nation’s current account deficit widens. The USD/JPY currency pair is lower this morning by 0.1 percent at 102.23 yen. Look for the JPY to continue going higher today.
The pound sterling is trading much lower versus its major currency counterparts this morning. Traders just do not feel that it is worth it for them to go long after the pound made some very important gains in previous trading days. Among the biggest losses for the British currency today are versus the yen, dollar and the euro. This comes before the Bank of England revised its prediction for British economic growth. You will need to be cautious while trading the GBP.
Stocks in the U.S. ended Friday’s trading session on a high. Investors just felt that it was really time for them to take risks. The fact is that the American economy is growing at a relatively fast pace.
The Dow Jones Industrial Average ended up making gains of 1.06 percent to 15,794.08.The Nasdaq Composite Index jumped 1.69 percent to 4,125.86. The S&P 50 made gains of 1.33 percent to 1,797.02.
Bank of America Corp. jumped 0.78 percent to $16.82. Facebook Inc. climbed 3.47 percent to $64.32.
There could end up being another rally later today due to the high amount of confidence in the markets.
There were some very important gains when it came to the crude oil binary option during last week’s trading session. Investors were really in the mood to take some big risks due to the very high returns which could be made. The biggest gains were on Friday when the black gold rose about $2 or so. The fact is that the stock market rally in America gave traders enough confidence to take big risks. However, the crude oil binary option is trading lower right now by about 50 cents, as traders have decided to put their money into alternative assets.
Gold futures have gained in the latest round of trading by over $11, as traders really are in the mood to take risks when it comes to the commodity. It did underperform during last week’s trading session, so what we are seeing right now is a breath of fresh air. It is likely that gold will continue to build on its current gains. Therefore, opening Call options may turn out to be profitable.
It is good to see that there is a lot of confidence when it comes to gold this morning. It seems that traders are just in the mood of going long on precious metals. This comes after the strength which we saw for U.S. stocks last week. It is important to take into account that the greenback is trading sideways this Monday. This has partially played into the hands of the gold binary option.