Weekly Trading Review – 17/05/2015

FMOC Meeting Minutes and Greek Debt Talks to Dominate Market Sentiment!

Weekly Trading Review – 17/05/2015

USD
The main event for the US dollar and perhaps the entire forex market in this trading week is the release of the FOMC minutes. This report should shed more light on what the Fed thinks of the recent slump in economic data, particularly in employment and inflation. Recall that the actual FOMC statement indicated that the slowdown was probably just transitory, although market watchers would be interested to find out if all the FOMC members share this view. Hawkish remarks or a reiteration of their plan to hike interest rates sometime this year could renew demand for the US dollar while a significant shift to a more cautious stance could lead to more losses. Also lined up from the US economy this week is the building permits and housing starts data, Philly Fed index, and CPI readings.

EUR
The euro drew support from optimism surrounding the Greek debt talks and the country’s loan repayments last week, but it remains to be seen whether the shared currency could continue its climb in the next few days. The region is set to print another batch of PMI readings which could indicate whether or not a sustained recovery is taking hold as ECB Governor Draghi has claimed. Also lined up this week are a few testimonies by Governor Draghi himself during which he might add reassuring remarks that the economy is seeing green shoots. The German ZEW economic sentiment index is due earlier on in the week while the German Ifo business climate reading is up for release towards the end.

GBP
The pound managed to sustain its post-election rallies in the previous week, despite downbeat remarks during the BOE Inflation Report. More economic reports are lined up from the UK this week, including the latest CPI readings and the BOE minutes. This should provide more clues on when the central bank might actually tighten monetary policy, although the tone of their latest Inflation Report suggested that they might wait until next year. More downbeat remarks could force the pound to return its recent gains while reassuring comments could allow it to climb further.

CHF
Even though Switzerland barely released any economic figures in the past week, the franc managed to advance against its forex rivals thanks to optimism surrounding the euro zone. This week, there are still no economic events lined up save for a speech by an SNB official and the release of the Swiss ZEW economic expectations report.

JPY
The yen has been taking its cue from risk flows and may continue to do so, although economic reports could give traders a better idea on what the central bank might do next. On Monday, data on core machinery orders and tertiary industry activity are lined up, with strong data likely to spur risk appetite and push traders away from the lower-yielding yen. The country’s preliminary GDP release is up for release on Wednesday and might cause more action among yen pairs, especially if the actual reading misses expectations. On Friday, the BOJ will make its monetary policy statement and possibly spur volatility for the yen as well.

Commodity Currencies (AUD, NZD, CAD)
The comdolls could also be in for a volatile week, as the RBA will release its monetary policy meetings on Monday and explain if they will continue to cut interest rates in their next statements. New Zealand is set to print its quarterly inflation expectations data then and probably lead to more Kiwi weakness if the forecasts are weaker. The country is also set to have a dairy auction mid-week and expectations are lower, following the Fonterra downgrade on volumes of whole milk powder last week. Canadian banks are closed for a holiday on Monday and the only top-tier report due from this economy is its CPI on Friday.

Fed and BOE Releases Set to Drive the Financial Markets in the Week Ahead

15.02.2015

Fed and BOE Releases Set to Drive the Financial Markets in the Week Ahead

Risk sentiment has mostly been responsible for the latest action in the forex market, as the pickup in commodity prices have supported higher-yielding currencies. Economic data also took center stage in the absence of major central bank events for the most part of the week.

The upcoming trading week should focus on more or less the same themes, especially since most of the central banks have already announced their policy decisions. Leading the pack are the Fed and the BOE, which have both maintained relatively hawkish biases in the midst of weak inflationary pressures. The RBA and BOC have cut interest rates a few days back, leading to a bit of dovishness, while the RBNZ has indicated a shift to a more cautious tone.

The BOJ has yet to make its policy statement this week, although no actual changes are expected for now. Data from Japan has come in mostly below expectations, particularly when it comes to inflation and spending, yet BOJ policymakers have maintained that additional easing isn’t necessary for now.

The BOE is set to print the minutes of its latest monetary policy meeting, but it seems that traders already got a good preview during last week’s Inflation Report hearings. During this event, Carney acknowledged the weakness in inflation and said that they could be open to cut rates if this persists. For now though, he reiterated that their next move is still likely to be a rate hike since the drop in price levels actually supported domestic growth. He even upgraded growth forecasts for 2016 and 2017.

The FOMC meeting minutes are also up for release this week and this could be crucial in setting the tone for dollar trends. Their latest announcement has been interpreted as a hawkish one since they completely dropped the phrase on keeping rates low for a “considerable time” and added that they “can be patient” in considering policy normalization. Analysts are pricing in a rate hike from the Fed in June, but the FOMC minutes might set a clearer time line for tightening.

Also due in the week are the RBA meeting minutes, which would shed more light on why the central bank cut rates in their latest statement. Governor Stevens already explained that this was partly spurred by weak hiring, as seen in the latest jobs release, but other policymakers might still weigh in on the weak spots in the Australian economy.

Consumer spending data is also set to drive forex pairs around, with New Zealand getting the ball rolling in the early Asian trading session on Monday. Quarterly headline retail sales might see another strong gain while the core figure could also post a decent increase, both of which might keep the New Zealand dollar supported.

Later on, the UK will also show its retail sales figures and possibly add evidence to Carney’s claims that domestic demand is robust. He has noted that the drop in consumer prices actually boosted real incomes and allowed households to stretch their budgets, citing that he hasn’t seen any reports that show the negative impact of weak inflation just yet.

Canada is also set to print its latest retail sales readings and might see a bit of a downturn in both headline and core figures. If so, talks of another BOC rate cut might weigh on the Loonie towards the end of the trading week.

Other main events include Japan’s GDP release on Monday, which could indicate if the economy has slumped deeper in recession or has managed to post positive growth. The New Zealand global dairy auction mid-week should also generate a lot of interest, as market watchers are keen to see if the rebound in dairy prices was sustained. Towards the end of the week, euro zone PMIs should add volatility to euro pairs.

Twitter Shares to Jump; AUDJPY Slump Ahead

08.02.2015

Twitter Shares to Jump; AUDJPY Slump Ahead

Forex

AUDJPY

AUDJPY Inverse Head and Shoulders | Short-Term Forex Reversal Formation

AUDJPY seems to be done with its recent downtrend, as an inverse head and shoulders pattern can be seen on its 1-hour forex time frame. Price is still testing the neckline resistance around the 92.00 major psychological level and may be due for an upside break soon.

However, stochastic is indicating that buying pressure is weakening since the technical indicator just reached the overbought zone and is turning lower. If the neckline holds as resistance, price could simply head back south and test its former lows near the 89.00 major psychological support.

An upside break, on the other hand, might lead to a move until the 95.00 major psychological resistance. After all, the inverse head and shoulders pattern is approximately 300 pips in height, which means that the resulting rally could be of the same size.

Earlier today, the RBA released its official monetary policy statement after cutting interest rates a few days back. As expected, the release showed that the central bank has been concerned about the impact of falling commodity prices on export revenues and growth. There are no economic reports lined up from Japan, indicating that any changes in risk sentiment for today might act as a catalyst for a breakout.

GBPUSD

GBPUSD Triple Bottom Breakout | Potential Resistance Pullback

GBPUSD finally broke out of its consolidation pattern on the 4-hour chart, as the pair headed beyond the neckline of the triple bottom formation. Price can climb as much as 200 pips from here, which is the same size as the chart pattern.

However, a pullback to the broken resistance level around the 1.5200 major psychological mark could still be possible. This depends on the outcome of the upcoming NFP release, which is slated to show a weaker gain in hiring of 236K compared to the previous 252K.

Stronger than expected US jobs data could renew demand for the US dollar and lead to a move back to 1.5200 or perhaps the bottom of the previous range at 1.5000. On the other hand, weak figures could lead to more gains for GBPUSD, possibly until 1.5500.

The BOE decided to keep monetary policy unchanged in their latest rate decision, indicating that the British central bank hasn’t joined the doves yet. Traders are still waiting for the minutes of their policy meeting to be released before deciding on a longer-term bias for the pair.

Stocks

Consolidation Breakout on Twitter Shares | Possible Climb to $54/Share

Twitter shares seem to have bottomed out, as price broke to the upside of its consolidation pattern on the daily time frame. While the shorter-term 50 SMA is still moving below the 200 simple moving average for now and indicating a downtrend, price has also broken above these dynamic inflection points recently.

This could be an early signal that buyers are piling on their long orders for the stock since risk appetite has returned to the financial markets. This has been spurred by several easing efforts from most major central banks, suggesting that demand could pickup in the near term.

The event risk for future price action is the upcoming NFP release, which could show whether the US economy is still doing well or not. The previous report showed a few weak spots, particularly in labor force participation and wage growth, and the January reading could indicate a weaker pace of hiring growth.

Strong data could keep US equities afloat and allow Twitter shares to extend its climb in the coming weeks, possibly until the next major resistance around $54/share. However, weak data could lead to another move back to the support around $36/share and a continuation of the selloff.

Twitter Shares to Jump; AUDJPY Slump Ahead

08.02.2015

Twitter Shares to Jump; AUDJPY Slump Ahead

Forex

AUDJPY

AUDJPY Inverse Head and Shoulders | Short-Term Forex Reversal Formation

AUDJPY seems to be done with its recent downtrend, as an inverse head and shoulders pattern can be seen on its 1-hour forex time frame. Price is still testing the neckline resistance around the 92.00 major psychological level and may be due for an upside break soon.

However, stochastic is indicating that buying pressure is weakening since the technical indicator just reached the overbought zone and is turning lower. If the neckline holds as resistance, price could simply head back south and test its former lows near the 89.00 major psychological support.

An upside break, on the other hand, might lead to a move until the 95.00 major psychological resistance. After all, the inverse head and shoulders pattern is approximately 300 pips in height, which means that the resulting rally could be of the same size.

Earlier today, the RBA released its official monetary policy statement after cutting interest rates a few days back. As expected, the release showed that the central bank has been concerned about the impact of falling commodity prices on export revenues and growth. There are no economic reports lined up from Japan, indicating that any changes in risk sentiment for today might act as a catalyst for a breakout.

GBPUSD

GBPUSD Triple Bottom Breakout | Potential Resistance Pullback

GBPUSD finally broke out of its consolidation pattern on the 4-hour chart, as the pair headed beyond the neckline of the triple bottom formation. Price can climb as much as 200 pips from here, which is the same size as the chart pattern.

However, a pullback to the broken resistance level around the 1.5200 major psychological mark could still be possible. This depends on the outcome of the upcoming NFP release, which is slated to show a weaker gain in hiring of 236K compared to the previous 252K.

Stronger than expected US jobs data could renew demand for the US dollar and lead to a move back to 1.5200 or perhaps the bottom of the previous range at 1.5000. On the other hand, weak figures could lead to more gains for GBPUSD, possibly until 1.5500.

The BOE decided to keep monetary policy unchanged in their latest rate decision, indicating that the British central bank hasn’t joined the doves yet. Traders are still waiting for the minutes of their policy meeting to be released before deciding on a longer-term bias for the pair.

Stocks

Consolidation Breakout on Twitter Shares | Possible Climb to $54/Share

Twitter shares seem to have bottomed out, as price broke to the upside of its consolidation pattern on the daily time frame. While the shorter-term 50 SMA is still moving below the 200 simple moving average for now and indicating a downtrend, price has also broken above these dynamic inflection points recently.

This could be an early signal that buyers are piling on their long orders for the stock since risk appetite has returned to the financial markets. This has been spurred by several easing efforts from most major central banks, suggesting that demand could pickup in the near term.

The event risk for future price action is the upcoming NFP release, which could show whether the US economy is still doing well or not. The previous report showed a few weak spots, particularly in labor force participation and wage growth, and the January reading could indicate a weaker pace of hiring growth.

Strong data could keep US equities afloat and allow Twitter shares to extend its climb in the coming weeks, possibly until the next major resistance around $54/share. However, weak data could lead to another move back to the support around $36/share and a continuation of the selloff.

Gold Bulls Take Charge; Crude Oil Extends Losses

Gold Bulls Take Charge; Crude Oil Extends Losses

Currencies

USD

The dollar was one of the most bullish currencies during the recent trading week. It gained as there was a lot of instability in the financial markets. Moreover, traders ditched bitcoin and crude oil, prompting them to buy into the greenback on all fronts. This all comes as the Fed is likely to go ahead with the interest rates increase later this year. With many positions in stocks overstretched, buying into the greenback seems to be the best bet. The fact is the dollar gained versus all 31 of its major peers last year. The Fed will go ahead with its first increase in borrowing costs since 2006.

EUR

The euro made some very big losses during the trading week. Traders decided that it was best for them to go short as there was a slump in European stocks. The euro tumbled versus the dollar and the yen as investors felt that it was better for them to put their money into haven currencies. If there ends up being additional losses for European stocks in the days ahead, then the euro will suffer yet again.

GBP

It was unfortunate to see the pound sterling trade sideways in the past few trading days. It was the case that the British currency was able to gain ground on Friday. The thing is that traders were not in favor of taking such big risks, as the British economy seems to be slowing down. In addition, there seems to be falling house prices, which could spell trouble. Therefore, you may want to continue ditching the GBP/USD once the coming trading week gets going.

Stocks/Indices

It was a shame to see that there were big losses for American stocks during the trading week that just passed. The same was true for British and European equities. Traders just had a lack of risk appetite following the big gains that we saw in previous weeks.

With there being falling U.S. wages and the forecast that rates will rise sooner rather than later, this sparked a selloff in American and global stocks. This all comes after the biggest two-week rally in three weeks.

Traders will need to trade very cautiously in the coming trading days if they expect to make maximum gains from the financial markets. One of the hot stocks is likely to be Apple, so go long on Monday.
Commodities

Crude Oil

The crude oil binary option slumped by several dollars in the previous several trading days. What really hurt crude was the selloff of volatile assets. In addition, OPEC reiterated its reluctance to cut output. Therefore, it is no wonder why traders are so bearish on crude oil futures at the moment. The commodity is currently trading at $48.17, and it will be interesting to see if it will dive below the $46.00 mark within a week’s time.

Gold

The gold binary option was able to surge during the trading week that just passed. Investors were in the mood to go long as the commodity has been offering them such high returns as of late. If there continues to be losses in global stocks in the next few trading days, then we would see gold surge. This means go long on gold as soon as possible.

Wild Card

Gold

Gold is one of the most underestimated assets to put your money in at the moment. Traders simply do not understand the opportunities that this yellow metal has to offer. This is why you should look to open weekly Call options once you get a chance on Monday.

 

Dollar Starts the New Year on a High

Dollar Starts the New Year on a High

Currencies

USD

For those of you who have been following the dollar since the start of the New Year will have noticed that it has commenced 2015 on a high. It has really surged versus all of its major peers as traders realize that an interest rate rise by the Fed is looming. This comes at a time when the economy of America is booming, while that of other countries is slumping. Therefore, it is no surprise why the greenback is so strong at the moment versus its counter currencies. It has jumped versus the Swiss franc, bitcoin and a number of is other peers. Further gains are on the cards in the week ahead.

EUR

The European single currency is one of the most bearish currencies these days. Traders have taken it upon themselves to go short on the euro due to the lack of factors backing it. In addition, while the Fed is set to raise interest rates, the ECB is set to go ahead with some very aggressive stimulus measures. Therefore, the weakness we saw this last week for the euro is no surprise at all.

GBP

For those of you who have been following the forex market very closely will have noticed that the sterling has been hit very hard. Traders just have not felt that it is worth it for them to go long on the sterling due to the lack of returns it offers. It ended up capping very big losses versus the greenback on Friday and for much of the trading week. Go short on the pound once you get a chance this Monday.

Stocks/Indices

There has been a lot of movement in global stocks in recent trading days and weeks. The thing is that there was weakness on Friday, but there were gains for the leading stocks and indices in America and England during the trading week that just passed. This all comes following the FTSE sliding last year for the first time since 2014, showing just what a lack of confidence there is in the British economy, as it cools down.

The Dow Jones and the Nasdaq were able to make some very important gains during the trading week. Investors are of the view that they should continue going long once Monday’s trading gets going. Therefore, you should get on the bandwagon to make maximum returns.
Commodities

Crude Oil

Traders felt that it was better for them to go short on crude oil for yet another trading week as production increased in the U.S.ad Iraq. In addition, key OPEC members stated that lower prices may lie ahead, leading traders to go short on all fronts. What is more is that traders went long on the greenback, which automatically led the commodity to slide. Traders should get ready for additional losses when speaking of crude oil futures.

Gold

Gold was trading sideways for much of the trading week, but the good news is that it was able to end Friday’s trading higher. Investors just think that it is better for them to go long at the moment due to the high returns which the metal offers. Look to open weekly Call options in gold once you get a free chance Monday morning.

Wild Card

Crude Oil

It has been the case that crude oil prices have gone lower and lower as traders just feel that it is not right for them to invest their money in the commodity. Look to go short for yet another trading week in order to make maximum returns.

 

Yen Caps Best Week in 16 Months

Yen Caps Best Week in 16 Months

Currencies

USD

There was a lot of action in the forex market during the trading week that just passed. The dollar ended its seven-week gain amid the crash in oil prices. The commodity tumbled a whopping 4% on Friday alone, showing just how much action there is at the moment in the financial markets. It seems that traders decided to ditch the greenback in the latter part of the trading week due to lower inflation and global economic outlook expectations. This increased the bets that the Fed will think about when to raise interest rates. The dollar slid versus the yen by a whopping 2.2 percent to 118.75 yen, the biggest weekly decline since August 2013.

EUR

The good news for the European single currency was that it was able to rally versus the majority of its major currency counterparts. This is even though it lost some ground versus the Swiss franc. It seems that the euro was oversold in previous trading weeks, prompting traders to go long on the euro in the past several trading days. Traders are hoping that the euro will continue going higher in the week ahead, so open weekly Calls.

JPY

The Japanese eyen saw its best week in 16 months, as the slump in oil prices sparked demand for the Japanese yen. Moreover, the yen was very much oversold in previous trading weeks. In fact, traders were able to buy the Japanese currency on the cheap. Also, the yen was able to surge due to the higher demand for some haven currencies. The most notable weekly gains for the yen were capped versus the greenback. There were also important advances versus the Russian ruble.

Stocks/Indices

We saw a lot of volatility when it came to global stocks. U.S. equities saw the worst week of losses since 2011. With oil price sliding into the abyss during the trading week, traders felt it was best for them to take out their profits and go short on American stocks. The Dow Jones binary option tumbled 1.8 percent. The S&P 500 Index fell 3.5 percent, its worst performance in over two years.

It is clear that the fall in oil prices is driving the way stocks are moving. The selloff picked up steam in the financial hours of trading on Friday, helping equities cap very big losses.

Financial traders will be cautious about making big investments in the coming days of trading.

Commodities

Crude Oil

Crude oil futures tumbled more than four percent at the end of the trading week, while the commodity also made very big losses earlier in the previous week of trading.  This all came as the International Energy Agency cut its demand forecast for the fourth times in five months. Crude dipped by a massive 12 percent during the week that just passed, showing just what a lack of confidence traders have in the black gold now.

Gold

There was a fall in gold prices from the middle of the trading week, as the demand for gold slumped as a hedge against higher consumer costs. Note that crude oil tumbled, playing into the weaker gold prices. It is important to take into account that gold futures will take another hit once the coming week’s trading session commences, so get ready for this.

Wild Card

Crude Oil

We have chosen crude oil as the commodity to ditch as soon as Monday’s trading session gets going. Weekly Call options are likely to bring high returns, as traders are of the view that selling is where the action is at.

 

U.S. Stocks Surge for Fifth Week on Economy, Surplus

23.11.14

U.S. Stocks Surge for Fifth Week on Economy, Surplus

Currencies

USD

The dollar gained some considerably ground during the trading week that just passed. Traders have poured a lot of money into equities and indices in the past several weeks due to the very high returns which are in it for them. It is evident that the dollar is very strong, and more strength will lie ahead for the U.S. currency. The thing is that the American economy has been improving notably in recent months, which has in turn lent the greenback a helping hand. Moreover, there has been a slowdown in the British, Chinese and Eurozone economies. To top this off, the by-election win of UKIP in Britain will lead to a further selloff of the pound and much higher demand for the U.S. dollar.

EUR

The euro ended sliding by the most in a year versus the yen at the end of the trading week. This came as the head of the European Central Bank Mario Draghi stated that there will be broader asset purchases. The euro reached its lowest level versus the yen since June 2013. In addition, the European single currency slumped versus a basket of other currencies amid traders foreseeing the ECB boosting stimulus measures to increase inflation in the Eurozone.

JPY

The Japanese yen tumbled to a seven-year lower versus the U.S. dollar after Japan’s Prime Minister Shinzo Abe announced early elections. The reason why he did this was in order to get a mandate for additional monetary stimulus. All of this has happened as the nation has entered into a recession. In addition, the BOJ has warned that inflation may slip below the one percent level before the end of the month. Therefore, the sooner the elections are over, the fewer burdens there will be on the yen.

Stocks/Indices

Stocks surged for the fifth straight trading week on more signs that the U.S. economy is improving. Moreover, the gains were in large part owed to the news that global central banks from China to Europe will go ahead with some additional stimulus measures. In turn, this led to many U.S. indices and stocks to rise to their highest ever level.

With oil jumping for the first time in eight weeks, this resulted in raw-material and energy stocks making some very important gains.

For the five days ending Friday there were gains of 1.2 percent to 2,063.50 for the S&P 500. The Dow Jones Industrial Average added 1 percent to 17,810.06

Commodities

Crude Oil

The crude oil binary option was able to make some very important gains during the trading week. Investors were in favor of going long as U.S. stocks and indices finished trading on Friday at an all-time high. This was largely owed to the improving American economy, and due to the fact that prices are undervalued. More gains are very likely for the commodity in the coming trading week, so get ready to go long.

Gold

We saw the gold binary option jumped to a three-week high on Friday. This came after China cut interest rates to support economic growth. This boosted the demand for precious metals as a store of value. The commodity has surged six percent after sliding to a four-year low on November 7. Traders foresee additional gains in the days ahead.

Wild Card

Dow Jones

For those of you who have been trading the financial markets closely in the past few weeks will have seen the Dow Jones make very important gains. As long as U.S. economic data improves, this will lend the Dow Jones further strength.

 

Pound Drops Most in 20 Months

16.11.14

Pound Drops Most in 20 Months

Currencies

USD

We have seen much eventfulness when speaking of the U.S. dollar in recent trading days. The greenback surged to a seven-year high versus the yen on reports showing a jump in consumer confidence and retail sales, indicating the momentum of economic growth in the U.S. economy is gaining strength. In addition, the USD/JPY pair climbed by 0.5 percent on Friday alone, while reaching the 116.82 yen level at one point, the highest it has been for seven years. This shows just how confident traders are. Weekly Call options for the USD/JPY are the way to go in Monday morning trading.

GBP

We saw the pound sterling slide against the euro by the most in 2 months during the trading week that just passed. This came on assessments by the Bank of England of the nation’s economic growth in the year ahead, meaning it is less likely that rates will be raised in the year ahead. This is in contrast to what was previously thought. In addition, the pound sterling touched a 14-month low versus the greenback at one pound last week.

JPY

The yen tumbled for a fourth straight week versus its major currency counterparts. This has come on Shinzo Abe calling for early elections, increasing the likelihood of there being additional stimulus. We saw the yen slide to its lowest level in seven years before the Bank of Japan meets next week. Traders were also surprised by additional stimulus at last month’s meeting. It seems the yen will slide even further in the coming days of trading, so be very aware.

Stocks/Indices

The good news is that U.S. equities jumped for the fourth straight trading week. Investors felt that it was time for them to go long yet again as there were positive signals coming out of the American economy. The economic data published showed an improvement in consumer confidence figures. In addition, the unemployment rate is below six percent, as more employers are hiring workers.

It is actually important to take into account that the week’s gains were not great, signaling that there may be a slowdown in market movement. However, we will need to see the way stocks and indices moved in the U.S. during Monday’s session.
Commodities

Crude Oil

There was weakness for the crude oil binary option for much of last week, but it was able to gain by nearly $2.00 on Friday. The fact is that there was a string of positive data which came out of the American economy on Friday and a stock market rally. Therefore, the gains which we saw at the end of the trading week were not a surprise. In addition, more gains may be on the cards this coming week.

Gold

It was the case that the gold binary option was weaker for the first half of the trading week. The thing is that the hot commodity was able to post its biggest two-day gain on Thursday and Friday since June. Therefore, investors should get ready to open Call options when they get the chance.

Wild Card

Gold

The current price of gold is lower than it should be, meaning that we could see the commodity build on its current value. This means that as a trader, you should start going bullish on the commodity as soon as Monday’s trading gets going in order to make maximum returns.

 

Dollar Caps Third Week of Gains

Dollar Caps Third Week of Gains
Currencies

USD

There was a third straight week of gains for the U.S. dollar after the European Central Bank pledged additional monetary stimulus following Japan doing the same. In addition, with the Federal Reserve moving ahead with higher interest rates, this has really lent the dollar a helping hand. It is important to take into account that the dollar’s gains were cutback on Friday after the U.S. added fewer jobs than was forecast. The good news is that the dollar touched a year high versus the euro in the week that just passed. The dollar is likely to continue making inroads into the yen and the euro in the week ahead.
JPY
The yen tumbled to a seven-week low versus the dollar recently. However, it is expected to bottom out next week, as the yen is seen as oversold. What we did actually see is the yen make some important inroads into the U.S. dollar at the end of last week’s trading session. The truth is that the Bank of Japan has continued to go ahead with some very aggressive stimulus measures and Japan’s public debt is 250% of GDP. Therefore, even if the yen makes gains next week, these would only be short term, and not medium or long term.

CAD

The loonie ended on a positive in the latter part of last week. This came about after another the release of some very positive jobs data from the Canadian economy. In fact, the nation’s unemployment rate dipped to its lowest level in six years. The currency jumped versus the majority of its 31 major currency counterparts. However, officials on November 3 pointed out that the nation still needs stimulus to give the economy a big boost. When that happens, we may see the loonie go lower.

Stocks/Indices

We did see U.S. stocks surge to their highest ever level this week, and the same was the case for the most traded indices. With big banks and average traders investing and having a lot of confidence in the financial markets, the gains which we are seeing to the moment are no surprise.
All of this came as employers hired fewer workers than was forecasted. The thing is that the unemployment rate in American dipped to its lowest rate in six years. This added to the speculation that the U.S. economy is withstanding an overseas slowdown. Trades hope for additional gains this upcoming trading week.

Commodities
Crude Oil

The crude oil binary option took a big hit during the week that just passed. The positive news is that it was able to make a mini comeback on Friday. What helped the commodity at the end of the trading week was the unemployment rate dipping in the U.S. It will be interesting to see which way the commodity will go in the next few days of trading.
Gold
The gold binary option made some very important gains during Friday’s trading session. However, it declined for much of the trading week. The fact is that the yellow metal was oversold for much of the trading week, so the gains made on Friday for much of Friday. Look to go long on Monday as a bullish comeback is 100% on the cards.

Wild Card
Dow Jones

The Dow Jones was able to make some very important gains during the week that just passed. There will need to be a lot of positive data published from the news wires throughout the coming trading week. Therefore, open weekly Call options on Monday in the Dow Jones on Monday.