We saw the U.S. dollar make some very big losses during last week’s trading session. Investors felt that it is better for them to go short on the U.S. currency for a number of important reasons. In fact, the greenback slumped the most in three month vs. its major currency counterparts. With additional signals that U.S. economic growth is waning, this has led traders to the conclusion that the Fed will not raise rates in the near future. The dollar made some very big losses versus the pound and the euro last week. Traders are expecting more of the same in the week ahead.
One of the hottest currencies during last week’s trading season was the British pound. Traders were really in the mood to go long on the cable due to the very bullish data that was published from the British economy. Among the most impressive gains were capped versus the greenback. The buoyant British economic growth has increased the case for the Bank of England to raise interest rates. There are forecasts that the GBP/USD forex pair will continue going higher. Therefore, look into buying into the pair if you are up for making big gains during next week’s trading session.
It was good to see that the loonie was able to make inroads into the greenback for much of last week’s session. The fact is that he loonie has been oversold to a certain extent. As a result, traders thought it was only right to go long on the Canadian currency last week. Among the most important gains were capped against the U.S. currency. This came about as the U.S. failed to publish positive economic data. Look for the USD/CAD pair to tumble in the next few trading days.
There were losses when it came to stocks and indices last week, despite a mini comeback on Friday. Traders were turned u during certain trading days due to the U.S. releasing weak economic data. The thing is that traders understand that the U.S. economy is not in great shaped. This is despite policymakers telling us completely the opposite.
We did see indexes such as the S&P 50 climbed on Friday, but this simply was not enough to show that it is the time for traders to take big risks when speaking of U.S. equities. There will need to be a turnaround when it comes to economic data for the U.S. economy.
We saw crude cap the biggest weekly fall since the month of March. There are a number of reasons for yesterday’s fall in crude prices. Traders simply did not feel that it was the time for them to take risks when it came to the black gold. With the news that fighting in Iraq spared the nation’s main oil producing region, this really hurt the crude oil binary option.
It was great to see that gold was able to cap its longest streak of weekly gains since January. There are a number of factors which are really helping the yellow metal at the moment. Among them are the very weak dollar and the forecast that the Fed will not go ahead with raising interest rates very soon.
The pound was able to make some very important inroads in the U.S. dollar during yesterday’s trading session. Investors are of the view that it is worth it for them to go long on the pair for yet another trading week.