Gold Starts Monday’s Session on a High
The dollar seems to be trading higher versus all its major counterparts this morning. The EUR/USD forex pair has fallen 0.08 percent to the $1.2941 level. The USD/JPY is trading lower at the rate of $1.2941. The AUD/USD pair is lower as of now by 0.07 percent at 93.80 U.S. cents. Take note that the gains for the U.S. dollar this morning come after there as a big rally on Wall Street on Friday. Therefore, the U.S. dollar may continue to find support, so ditching the EUR/USD is where the action is at.
One of the weakest currencies at the moment is the British pound. The GBP/USD currency pair is lower this morning by 0.65 percent at the $1.6218 level. The pound has been going lower versus the greenback for more than a week now, as investors fear that Scotland will leave the U.K. The opinion polls show that the likelihood of this is getting higher as each day passes by. Therefore, you will need to take this very seriously if you are serious about trading the pound sterling in the hours ahead. The British currency slid to the weakest level versus the dollar since November, and the sterling has also lost considerable value versus the yen is this Morning’s trading session. Investors should look to go short on the GBP/USD currency pair to make maximum returns today.
We have seen the yen get weaker and weaker in recent trading weeks. Investors have decided that it is better for them to go short on the Japanese currency after the Bank of Japan went ahead with some very aggressive stimulus measures. What has hurt the yen this morning is the release of data showing that business spending and business confidence in the nation has dropped. In addition, there has been a big fall in the country’s previously very large current account surplus. The yen has tumbled versus its main peers by a whopping 1.4 percent in the past month, as traders put their money in currencies which offer much higher returns.
It was great to see that there was a rally on Wall Street on Friday. Investors felt like going long on stocks and indices due to the very high returns which they could made.
The Dow Jones Industrial Average advanced 0.4 percent to the 17,137.36 level. The S&P 500 added 0.5 percent to 2,007.71.
Apple Inc. added 0.87 percent to $98.97. Microsoft Corp. climbed 1.44 percent to $45.91. Facebook Inc. jumped 1.72 percent to $77.26.
We have seen crude oil futures trade lower since the beginning of today’s trading session. Traders have decided that it is better for them to go short due to the lack of returns available for them. Despite the recent losses for the black gold, traders are of the view that there may be gains ahead with regards to crude oil. The commodity is trading near the lowest level in three months on falling Chinese imports. However, Call options may be the way to go in the hours ahead.
The good news is that the gold binary option has been able to start the current trading week on a high. The commodity is trading higher as of now by over $4 as a number of other assets are trading lower. In addition, gold is seen as undervalued, meaning more gains are likely today.
It is expected that the Dow Jones will go even higher today, so get read to open daily Call options in the index.