There were very big losses when it came to the greenback during last week’s trading session. With the Federal Reserve revealing that they are not in a big hurry to raise interest rates, this resulted in traders going short on the dollar and long on its counter currencies. What also ended up driving the USD much lower was the fact that there was a big rally in U.S. equities in the second half of the trading week. This sparked a selloff of haven currencies such as the greenback. The dollar ended up sliding the most in 10 weeks versus the euro amid the cut in the forecast of U.S. economic growth.
The Canadian dollar was one of the biggest gainers during last week’s session. The thing is that the loonie was previously oversold, which made the gains for the currency even greater. The reality is that the Canadian economy is growing faster than the American economy, which has led to a big fall in the USD/CAD forex pair as of late. In addition, with Canadian interest rates higher than U.S. rates, it seems more practical to go long on the loonie and sell the greenback at the moment. Therefore, look to sell the USD/CAD pair in the week ahead.
We continued to see gained when it came to the cable last week. Investors felt that it was a good idea for them to go long on the GBP after there was the release of a string of positive economic data released from the British economy. The GBP/USD forex binary option climbed to its highest level since 2009. This comes on bets that the Bank of England will increase interest rates sooner rather than later. This is in order to decrease potential inflation and prevent the economy from overheating.
We saw a good amount of strength for U.S. stocks during last week’s trading session. There were a number of reasons for this. This led the Dow Jones Industrial Average to rise to its highest ever level. Trades felt like going bullish due to the forecast that rates will be kept lower for a prolonged period. This may in turn lead to bigger investments in U.S. assets.
What really gave the market a big boost was Fed head Yellen’s comments last week. This may continue boosting U.S. equities in the week ahead. Therefore, look to go long once you get a free chance.
We saw the crude oil binary option ending up making some big gains in the latter part of the previous week of trading. Investors seemed to be in the mood to take bigger risks as the trading week passes by. In addition, with ISIL making additional ground in Iraq, this has sent the price of the commodity through the roof. More gains are on the cards in the coming week.
Gold futures were able to cap the biggest weekly advances in four months. Traders felt like it was the right time to go long on the commodity last week as it was greatly undervalued. Also, with the greenback diving into the abyss, it seems that it was the perfect chance to make profits when it came to the yellow metal.
One of the biggest gainers as of late has been the GBP/USD forex pair. With the British economy going from strength to strength, the gains which we have seen are not a surprise. Therefore, you may want to go bullish yet again when it comes to the GBP/USD in the upcoming week.