Pound Rally Dominates the Headlines- 16/07/2014

Currencies

USD

The dollar has been one of the strongest currencies in recent trading sessions. Traders decided that it was worth it for them to take risks when speaking of the American currency. The dollar was able to make very important gains versus its peers on the Yellen comments. It is expected that interest rates will be raised sooner than previously thought, as the American economy is performing much better than many people had previous expected.

EUR

The euro ended up making some very big losses on Tuesday. Traders simply felt that the euro is still overvalued, so the losses which we saw on Tuesday were not a surprise. Among the biggest losses were capped versus the dollar and the shekel. The thing is that there simply has not been enough positive economic data published from the news wires. The euro may actually make a bullish comeback in the hours ahead, so get ready to go long on the European single currency if you want to make maximum returns from the forex market.

GBP

For those of you who have been following the financial markets very closely as of late will have noticed that the sterling is by far the strongest currency. It continues to build on its gains from day to day, and from week to week. The most impressive gains were capped versus the dollar and the euro. Traders do have a number of very good reasons to go long on the GBP/USD forex binary option. Expect there to be additional gains in the hours ahead.

 

Stocks/Indices

There was a lot of volatility when it came to U.S. stocks during yesterday’s trading session. Investors felt that it was better for them to go short on biotech and social media stocks on the fear that the prices are overinflated.

The weakness for these stocks came as Fed officials stated that their value was overstretched. This really led to a lot of panic, and traders to dich their long positions. The thing is that Fed officials have warned more than 1 time this year about the valuations of smaller companies, so this should not come as a big surprise.

It is advised that you put your money into specific stocks rather than trade without knowing the numbers.

 

Commodities

Crude Oil

One of the most volatile commodities these days is the crude oil binary option. The thing is that the commodity was trading lower for much of yesterday’s trading session. The good news is that it managed to make a bullish comeback in the latter hours of trading. Investors realized that it was undervalued, which is why they felt that it was better for them to go long and take big risks later last night.

Gold

If you have been following the movement of precious metals closely in recent trading weeks, then you would have noticed that the gold binary option has been very volatile. We did see it go higher for much of yesterday morning’s trading session. The thing is that it went much lower as the trading day passed by. In fact, the gold binary option tumbled to its lowest level in three weeks amid the much stronger greenback.

 

Wild Card

GBP/USD

Both the pound and the dollar are among the most bullish currencies at the moment. Traders have been in favor of going long on both due to there being much positive data published from both respective economies. Open daily Call options during Wednesday morning trading.