S&P 500 Climbs the Most Last Week since February
The dollar was one of the best performing currencies during the week that just passed. Between Tuesday and Thursday it managed to cap a three-day winning streak. However, it was hit on Friday. The bigger picture shows more demand for the U.S. currency. Traders just feel that they should go long due to the ability to make a lot of gains on the improving American economy.
The pound sterling capped its biggest weekly drop in four months last week. This is as both the Bank of England and the Federal Reserve signaled that interest rates may rise in the near future. The sterling tumbled versus all 16 of its major currency counterparts due to U.S. Fed head Yellen signaling that stimulus will be pared and rates will rise in the months ahead. There may actually be a comeback for the GBP in the week ahead.
There has been a lot of volatility for the CAD in recent trading weeks. In fact, it fell to nearly its lowest level in five years, despite climbing on Friday. There has been a lack of demand for the loonie due to policy makers in the nation stating that rate cuts must not be ruled out. This comes at a time when the U.S. and several other countries are planning for rate rises. Look for the CAD to surge a lot in the days ahead.
There has been a lot of movement for U.S. stocks in the past few trading days. In fact, U.S. stocks ended up making a comeback during the latter part of the previous trading week. The S&P 500 was able to record its best week since February. We also saw a number of other indexes surge. This came as jobless claims and manufacturing data came out much better than expected.
We saw JPMorgan Chase & Co. advanced 5.9 percent last week, while other leading stocks in the U.S. also managed to surge. Among the biggest gains were banking and tech stocks. Traders are of the view that these gains will be extended during next week’s trading session.
Crude oil managed to make a big round of gains during the previous week of trading. The commodity climbed notably due to Russia annexing the Crimea. This puts the likelihood of a New Cold War higher. There are more and more risks in the markets at the moment, and worries about the supplies. Traders are of the view that crude oil will make even bigger gains once Monday’s trading gets going.
We saw a lot of weakness for the gold binary option during last week’s trading session. The gains on Friday were not enough in showing that gold is a commodity we can rely on 100%. The weakness for gold last week was somewhat due to the much stronger dollar. It is also important to take into account that in weeks prior to last week, gold made some very important gains. Investors feel that gold may actually climb next week, as it is currently oversold.
One of the most volatile commodities in recent trading weeks has been gold. It ended up going very weak last week due to the very strong dollar. With gold and the dollar trading inversely, the bullish dollar has put much downward pressure on gold. Investors have to trade very carefully if they intend to make high returns in the week ahead. Look to open weekly Call options in the gold binary option.