The euro was one of the weakest currencies during last week’s trading session. It saw its biggest fall since January, as the European Central Bank is forecast to reduce interest rates. This means that the value of the EUR is likely to continue sliding in the weeks ahead. The aim is to put an end to deflation and boost economic growth in the region. ECB President Mario Draghi stated earlier this month that the strength of the euro is a big concern. Therefore, the latest forecast for a rate cut is no surprise. Look to go short on the EUR in the week ahead.
The Japanese yen ended up making some very important gains versus its peers. Traders were in the mood to go long due to the ability to make some very high returns form the financial markets. The thing is that there was demand for haven currencies to some extent, as the euro and a number of other majors tumbled. In addition, there was weak economic data that was published from a number of leading economies such as Canada. Open weekly Call options in the yen once you get a free chance during Monday morning’s trading session.
We saw the loonie end up making some very big losses during last week’s trading session. Investors were just not in the mood to take big risks. The CAD declined the most in over a week on a report showing that growth tumbled in the first quarter. GDP was 1.2 percent in January through March, much lower than the 2.7 percent forecast. There may be additional weakness for the CAD in the week ahead.
We did not see so much volatility when it came to European stocks during last week’s trading session. The good news is that they were able to climb for the seventh straight trading week.
The Stoxx Europe 600 Index was able to jump for the seventh straight trading week. This shows that at least traders have confidence in regional stocks. The better-than-forecast economic data from the U.S. outdid the consumer confidence data that missed forecasts.
What may have really lent European equities a helping hand was the likelihood that there will be more stimulus no he cards in the region. This means there may be yet another week of gains.
Oil fell for the first trading week since May 2. This came as U.S. consumer spending fell in April. In addition, there was rising inventories, showing an increase in supply of crude. On Friday, we saw WTI slide for the first time in four days. In addition, there was also very weak housing data, showing just how fragile the American economy is at the moment. Don’t be surprised if crude continues its slide in the days ahead.
Gold was one of the most volatile commodities last week. In ended up post its biggest weekly decline in 8 months. This came on signs of easing tensions between Russia and Ukraine and the U.S. equity rally. Look to go short on gold futures if you want to make high returns from the commodities market in the coming week of trading.
There has been a lot of volatility when it has come to gold in recent trading weeks. Traders have decided to go short as of late, as there is simply little demand for haven commodities. This is why you will want to go short in the days ahead to make maximum returns from the financial markets.