Pound Very Bullish versus its Peers Today
We are seeing a lot of weakness when it comes to the U.S. dollar this morning. Investors are of the view that it is better for them to go short after the interest rates in Turkey were raised. The result has been a lack of demand for haven currencies such as the greenback. The dollar is trading much lower versus the euro and the pound. However, it is higher versus the Aussie.
When speaking of bullish currencies today, the pound seems to come to mind. Investors are of the view that it is worth it for them to go long due to the great potential to make profit. The GBP/USD currency pair is higher this morning by 0.08 percent at $1.6593. The pound has also made impressive inroads into the euro. This has happened due to traders understanding that it is worth it for them to go long on the British currency that is tied to a strong economy.
We are seeing a lot of weakness for the yen in the latest round of trading. This has come after the Turkish central bank decided to raise interest rates, a move it took to stem the selloff of the lira. The result has seen a lack of demand for haven assets such as the yen and he Swiss franc. The yen’s losses may be compounded later on.
It was great to see that U.S. stocks ended yesterday’s trading session higher. This was after they dipped notably on Friday and Monday. One of the main reasons for the gains which we saw was higher consumer confidence and better than forecast earnings for the leading companies.
The S&P 500 advanced from its worst declines since the month of June. All of this comes prior to the Fed meeting in the coming hours of trading.
The Dow Jones Industrial Average advanced 0.57 percent to 15,928.56. The Nasdaq composite Index advanced 0.35 percent to 4,097.96.
Bank of America Corp. climbed 2.58 percent to $16.73. Cisco Systems dipped 1.14 percent to $21.75.
Crude oil futures were trading at their highest level in three weeks, but it seems that the gains were overdone. As a result, investors decided that it was time for them to go short due to the risks which are currently in the markets. Crude oil is lower at the moment by 49 cents at the $96.92 price level. Traders just do not feel that it is worth it for them to take risks with crude oil as of now. Therefore, you may want to go short on the black gold in order to make high returns.
The gold binary option did take a big hit yesterday, as investors were simply not in the mood to go long on the yellow metal. However, gold is trading higher by a few dollars this morning, as investors understand just how undervalued the commodity was. There will be a lot of opportunities to make money from gold in the hours ahead, so make sure you understand the implications of all of this today.
There is a lot of action when speaking of commodities at the moment. Traders just feel that they should take it upon themselves to go short on energies such as crude. However, you will need to take into account that there could end up being a bullish comeback later on for oil prices. As a result, look to open weekly Call options for the crude oil binary option once you get a free chance.