It is great to see that there is so much confidence when speaking of the U.S. dollar this morning. Traders are of the view that it is the right time for them to go long on the American currency. This is after it did not perform so well previously. In addition, the U.S. has ended up publishing some very positive economic data. The dollar has surged versus nine out of its 10 most traded peers so far this month. The dollar has climbed 1.7 percent versus the euro this July. In addition, the U.S. economy is adding more jobs, while there is more price stability in the American economy.
The Canadian dollar is trading at its highest level in a week versus its main currency counterparts. The strength for the loonie comes on retail sales in the nation climbing for a second straight month. This follows a report from last week which showed consumer prices are the highest in more than two years in June. The BOC will continue to hold rates at 1 percent for the foreseeable future.
The kiwi is trading at its lowest level in 9 months on the central bank in the country releasing comments that there could be a significant fall in the kiwi. The currency is trading lower against virtually all of its major peers in the latest round of trading. The loonie slumped 1.3 percent versus the greenback in the early hours in Asian trading is Thursday. Look for there to be further weakness for the NZD in the hours ahead.
It was great to see that there was a big rally in U.S. stocks during yesterday’s trading session. This rally saw the S&P 500 Index rise to its highest level veer.
The S&P 500 surged 0.2 percent to 1,987.19. However, the Dow Jones slumped 0.2 percent to the 17,087.91 level.
Apple Inc. climbed 2.61 percent to $97.19. Facebook Inc. added a whopping 2.92 percent at $71.29.
It is expected that the Fed will keep interest rates lower for nog than was expected. This has led traders to go long on all fronts as of late. The bad news is that the IMF cut U.S. growth forecast this year to the 1.7 percent level from the initial 2 percent.
We are seeing the crude oil binary option go lower this morning by 26 cents at the $102.85 level. Traders simply do not feel that t is worth it for them to go long on the U.S. currency in the latest round of trading. They prefer to put it in assets which carry fewer risks. In addition, the crude oil binary option has tumbled this morning on h much stronger greenback.
The gold binary option is trading lower this morning by about $6.40. Trades feel that the commodity is overvalued at the moment and view now as the right time to go long on it. What is really putting much downward pressure on the yellow metal right now is the much stronger dollar. As long as the greenback will remain bullish, we are likely to see gold go much lower. As a result, look to open Put option this morning in the gold binary option.
For those of you who have been trading the financial markets closely will have noticed just how weak the black gold is. Traders feel that they should go short due to the lack of returns which are on offer when speaking of the black gold.