Gold up Following 2 Days of Declines!
The U.S. dollar is trading higher on all fronts this morning. Investors feel like going long on the greenback following the losses which we saw on Wall Street yesterday. The fact is if the U.S. decides to cut stimulus, then the result will be the dollar gong even high. The GBP/USD pair is lower this morning by 0.05 percent at $1.6342.
There is a lack of demand for the European single currency this morning. It is trading lower versus the pound and the dollar. This is after the German DAX Index made very big losses during yesterday’s trading session. Also, policymakers have warned that the Eurozone debt crisis is far from over. This is why traders have already sold the EUR/USD currency pair this morning. The economic data from the region will be vital to follow throughout today’s session. To earn high returns, start ditching the euro this Friday morning.
The Japanese yen is very weak at the moment, as traders feel that going long on the Japanese currency is out of the question. Instead, they have decided to sell the Asian currency due to the fears about the nation’s economy. Also, the central bank keeps boosting the nation’s economy with more stimulus, which is resulting in a much weaker yen. The yen fell to its lowest price level in five years versus the dollar.
Stocks on Wall Street fell for a third straight trading day, as investors were really not in the mood to take risks. It is the positive American data which has led traders to ditch the top stocks on Wall Street.
The Dow Jones Industrial Average fell 0.7 percent to 15,739.43. The S&P 500 dived 0.4 percent to 1,775.50.
Facebook climbed 4.96 percent to $51.83. Cisco Systems slipped 0.57 percent to $20.51. Microsoft dived 1.04 percent to $37.22.
It is unfortunate to see so much bearishness for American stocks during the current trading week. Traders should get ready to open Puts in the leading indexes.
Oil prices are lower this morning by about 4 cents at the $97.46 price level. The commodity is headed for a weekly loss on Fed tapering forecasts. Traders are eying a three-week decline for the commodity for this current trading week. The good news is that the commodity has a bright future following data in the U.S. showing that retail sales climbed 0.7 percent in November, the most since June. You will want to follow the Fed’s meeting on December 17 and 18 in order to trade the black gold wisely in the hours ahead.
The gold binary option is trading higher this morning by about $4. This is after it tumbled in the previous two trading sessions. The reality is that gold recently fell to its lowest level in five months, which has ended up spurring buyers. They understand that there is not much lower that the commodity can go. This is why traders have decided to go long on the yellow metal in the past few hours of trading.
One of the weakest commodities in the past few trading days has been gold. Traders felt like selling the metal due to the forecast of tapering by the Fed. Instead, traders decided to put their money into alternative assets. The positive news is that this trend has been reversed to a certain extent in the latest round of trading. That is why you will want to go long on the gold binary option today in order to experience much needed gains.