S&P 500 Caps Longest Losing Streak Since 2012
The dollar capped its biggest monthly gain since May 2013. Traders felt that it was worth it for them to buy into the greenback during January amidst fears in emerging market currencies. Traders are now seeking safe havens such as the USD. The dollar surged 1.2 percent versus its 10 most traded counterparts. The USD will at least extend its gains into the early part of the upcoming trading week, so get ready to go long.
There were some very important gains when it came to the Japanese currency during last week’s trading session. Among its gains were versus the loonie, British pound and U.S. dollar. This is a relief to a certain extent, as the JPY was oversold. With there being a big selloff of emerging market currencies, the gains which we saw for the Japanese yen was no surprise. More losses for the USD/JPY are likely.
The Canadian dollar saw its worst start to a year since 1972. This comes on the speculation that the nation’s central bank favors slashing interest rates. Moreover, investors ditched the loonie amid the selloff of global safe havens The CAD had lost a massive 4.5 percent during the previous month of trading. Among its biggest losses were versus the pound sterling and the U.S. dollar. Traders should be very cautious while trading the CAD is they want to make maximum returns from the financial markets.
The S&P 500 Index capped its longest losing streak since the year 2012. It has fallen for three straight weeks, as there are fears that the tapering of Fed stimulus will end up having a very negative impact on the American economy. Moreover, traders have felt that the leading U.S. index has been overvalued, helping it slide notably in recent trading weeks.
Shares such as Boeing and Caterpillar experienced a difficult trading week, as there are fears about future sales on the products of these two leading American companies.
It may be that the recent losses are a touch overdone for U.S. equities, so look to go long this upcoming week.
The crude oil binary option took a hit at the end of the previous trading week. In fact, it fell from the highest level in 2014, as there are fears that the prices were too high. The weakness came also on the forecast that developing economies may shrink. With the Federal Reserve slashing stimulus and Chinese growth slowing, this ended u hitting oil price hard. It may be that crude oil will continue sliding in the coming trading days.
Gold was weaker for much of the previous week of trading, but it managed to climb slightly on Friday. With there being more risk in the financial markets, investors felt that they should at least put some of their funds into the yellow metal at the end of the previous trading week. It is vital to understand that investors are unsure of which assets to put their money into at the moment. However, gold may gain in the days ahead due to its better status as a haven.
There is a lot of volatility when speaking of the financial markets these days. The S&P 500 has slipped for the past three trading weeks. This was after this index managed to cap some important advanced at the end of last year. The reality is that the S&P 500 is somewhat oversold. Look into the S&P 500 to make some additional gains during this coming trading week.