Pound Drops Most in 20 Months
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.
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.
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.
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.
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.
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.
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.