The greenback was one of the weakest currencies in previous trading sessions. Investors felt that it was good for them to go short due to the lack of returns it was providing them. However, the dollar is doing a bit better today. The thing is that there is mixed behavior in the currency market at the moment. Traders are not sure which currencies to put their money into today ahead if the data which is set to be published from the U.S. economy later on.
The European single currency was very strong in previous trading sessions. Investors foresee big future gains, which promoted them to go long on the currency. However, it has slid into the abyss in the latest round of trading. The euro has made big losses versus the pound and the dollar. The reason why the currency is so weak at the moment is due to the high potential for an ECB cut in interest rates. This would surely lead to even more downward pressure on the currency.
We saw the yen make some very important gains in previous trading sessions. The thing is that there is now a lack of demand for the Japanese currency. Investors are of the view that it is the time for them to sell currencies that are undervalued. The yen has slumped for a second straight day versus the greenback due to the improving outlook for Chinese manufacturing. This weakened the demand for safe-haven currencies.
U.S. stocks were weaker during Tuesday’s trading session, but they were able to make a bullish comeback yesterday It was good that investors became much more confidence in the financial market.
The Dow Jones Industrial Average climbed 0.97 percent to the 16,533.06 level. The S&P 500 surged 0.81percenr to 1,888.03.
Cisco Systems made gains of 1.49 percent to $24.48. Facebook Inc. surged 3.3 percent to $60.49. Man other leading stocks also were able to jump on Wednesday.
Investors are hoping that the economic data from the U.S. economy will turn out to be very positive this afternoon. It may turn out to bring very high returns by going long this afternoon.
Crude oil futures are lower this morning by 22 cents at the $103.84 level. Traders gave decided to ditch the currency today, as it seems not be offering them the returns they deserve. Instead, they have out their money into commodities such as gold. The thing is that crude prices are quite high at the moment. Traders are concerned that the commodity is overvalued. It is vital to take into account that the black gold is still trading near its highest level in four weeks on positive Chinese economic data
The gold binary option is higher today by $6.40, as there is a lot more confidence in the commodities market. Investors have taken it upon themselves to go long no the yellow metal before the string of economic releases form the U.S. economy in the hours ahead. The reality is that the U.S. dollar is very much undervalued. Gold’s gains would have been grater if it was not for the Fed sating that inflation will be low for a prolonged period in the U.S.
A very popular commodity to trade at the moment is the crude oil binary option. Investors have sold off the commodity in the past few hours of trading as they simply feel that it is not worth it for them to go long. There are many risks, which is understandable.