Oil Slides on Weak Chinese Data
The dollar is trading mixed this morning on the onset of Fed tapering. The dollar has gained ground versus the euro and the pound, but it is trading lower versus the yen. Traders are not so sure which assets to put their money into when it comes to the currency market. Therefore, you will need to wait until more data is released from the news wires this afternoon.
The pound sterling has lost a lot of ground versus the greenback this morning after gaining at the end of last week. On the other hand, the British currency has made inroads into the euro after there was the publication of retail sales data which came out better than was expected. Therefore, traders should not be surprised if the GBP/USD forex pair manages to make a bullish comeback in the coming hours of trading.
The European single currency is trading lower on all fronts this morning, as traders just do not feel that it is worth it for them to put money into the euro. The euro has made big losses versus the pound and the yen, as investors have taken it upon themselves to ditch currencies which are considered risky. This may be the case in the coming hours of trading if the leading economies fail to publish positive economic data. Look to sell the EUR/USD currency pair as the trading day passes by.
There was a big slump on Wall Street at the end of last week, as traders feared the coming of Fed tapering. With there being less stimulus in the U.S. economy in the near future, traders took the chance to sell the leading stocks and indices on Wall Street.
Among the biggest losers were the S&P 500 Index and the Nasdaq Composite Index.
Even though banking shares have been quite strong as of late, there were hit considerably on Friday.
There may turn out to be a bullish comeback in the latter hours of trading, so make sure you are prepared.
Crude oil futures are trading lower this morning by 68 cents at the $93.91 level. It has fallen from its lowest price level in two weeks, as Chinese factory orders data came out much weaker than was forecasted. This shows just how quickly the situation can change in the commodities market. It is important to take into account that the Chinese economic growth rate is at its lowest level since 1999, which has played into the way investors trade recently. Therefore, you may want to be cautious while trading the crude oil binary option in the coming hours of trading.
The gold binary option has risen to its highest rate in six weeks on signs of increasing demand. This is after it went sideways towards the end of the previous trading week. What we are seeing at the moment is just so much volatility in the commodities market, meaning you will need to be prepared for all possibilities each trading day. The metal is trading higher this morning by about $4, so look into opening Call options today.
We need to understand that crude oil was one of the most bullish commodities during the previous few trading days. However, traders have taken it upon themselves to ditch the commodity today. The commodity is somewhat overbought, which is a reason why the commodity is trading lower. Just after the release of weak Chinese economic data, traders may want to ditch the commodity in the hours ahead.