Majority of Asian Stocks Climbed on Monday
We saw a mixed session when speaking of the greenback on Monday. This came after there was a very important rally with regards to Asian stocks. There simply is a lot of unpredictable behavior in the forex market at the moment. The USD/JPY pair gained considerable ground, while the greenback fell versus bitcoin. This shows just how mixed the USD is trading since the start of the current trading week. The instability when speaking of the greenback follows a week where we saw a lot of strength when speaking of the American currency. Traders may want to wait on the sidelines when trading the dollar in the hours ahead in order to cut potential losses.
We did see the euro hit a one year low versus the dollar recently on the worsening economy in the Eurozone and the bullish U.S. economy. Traders just do not want to take the risk of going long on the European single currency at the moment due to the big risks which it entails. The euro may continue trading sideways in the hours ahead this Tuesday, so investors may want to look to sell in order to make maximum returns from the forex market.
The positive news is that the pound was able to make some very impressive inroads into the greenback and a number of its other main peers yesterday. The pound gained for a fourth straight trading day versus the dollar and the euro. This is after it slumped during the early part of last week’s trading session. The sterling advanced the most since early July versus the euro on the forecast that the European Central Bank will add stimulus during this week’s meeting. This is amid Bank of England members debating whether to increase British interest rates.
The majority of Asian stocks gained on a report showing that Chinese manufacturing data came out worse than expected. This led traders to the conclusion that China is likely to go ahead with some very aggressive stimulus measures. The market seems to be rating bad news as good news at the moment, according to leading analysts.
China’s Shanghai Composite Index added 0.8 percent. Japan’s Topix Index gained 0.4 percent. South Korea’s Kospi Index was almost unchanged,
Among the biggest gainers when speaking of Asian equities were tech stocks such as Samsung. There were also impressive advances for a number of car companies. Traders are hoping that Asian stocks will build on their gains during Tuesday’s trading session.
The crude oil binary option was lower for much of yesterday’s trading session, as investors felt that the commodity was overvalued. As a result, they decided that it was better for them to put their funds into assets which offered them higher returns. In addition, traders will be waiting for economic news in the hours ahead before deciding whether or not it is worth it for them to go long on the black gold today. Daily Call options may be where the action is at his Tuesday.
One of the most interesting assets to trade at the moment is the gold binary option. It was a touch higher for most of Monday’s trading session. This was as the dollar did see a lack of direction. It will be interesting if the commodity will be able to surge above the $1,290 mark.
It was the case that crude oil dived yesterday. The thing is that traders may want to go long this morning in case of a comeback.