The dollar seems to have got stronger and stronger after data showed that the American economy continued to improve. In fact, the greenback capped its biggest weekly gain in six weeks after U.S. data showed that the American economy was adding more jobs much faster than was forecasted. This was in contrast to what we have seen previously, which showed that the U.S. economy was not growing as fast as many people had hoped. However, the USD has fallen 3.7 percent in the past year, according to leading analysts. Therefore, more gains are very much welcome by forex traders in the coming week of trading.
One of the hottest currencies at the moment is the British pound. It was able to cap some very important gains during the week that just passed. It has been able to make impressive gains versus the euro, dollar and a number of its other peers on the forecast that the Bank of England will increase rates sooner rather than later. In fact, the cable climbed to its highest level since 2008 against the greenback. The GBP/USD posted the longest streak of weekly gains in 1 1/2 years, and look for the GBP/USD pair to go higher in the week ahead.
There has been a lot of excitement when speaking of the Aussie in recent trading sessions. The thing is that the Australian dollar slumped 0.7 percent during the trading week that just passed against its U.S. currency counterpart. This is its biggest weekly drop since he we ending May 23. It is expected that the AUD will continue its downward spiral due to leading Australian policymakers stating that the currency is highly overvalued at the moment.
For those of you who have been following the movement of Asian stocks as of late will have seen the advances which the region’s equities were able to make. It seems that investors have a lot of confidence right now with regards to Asian and other global tocks. What really has lent them a helping hand has been the impressive economic data that was published from the American economy.
One thing that needs to be taken into account is that the U.S. employment data continues to improve, which has compounded the gains which we have seen in Asian stocks. Look for there to be additional gains in the days ahead.
The crude oil binary option recorded its biggest weekly loss since January. It seems that investors have simply not been in the mood to take very big risks, as there are less concerned over the chaos in Iraq, With there being a resumption in production in two of Libya’s biggest oil refineries, this has given traders the confidence to go short on the black gold. More losses may be in the cards in the days ahead.
Gold was not been the best performer in the past week or so, as positive U.S. economic data has led investors to ditch the precious metal. There seems to be no point in going long on have assets, as investors prefer to take risks. This may continue if the leading economies continue to release a lot of positive economic data. Therefore, start opening weekly Put options in gold once Monday’s trading commences.
If you have been following the forex market closely, then you will have seen that the GBP/USD forex binary option has been going from strength to strength on the soaring British economy. Much of the same is likely this coming trading week.