S&P 500 Ends Five-Week High
The pound has fallen to its lowest level since November versus its main peers. To sum up, the sterling slumped for a second straight trading week due to polls showing a swing in favor of Scottish independence from the U.K. pushing down demand for the pound. U.K.’s three main parties are united in opposition to Scottish independence. The thing is that anything can happen by the time of September 18, which means there could be further losses for the pound sterling. The GBP/USD forex binary option tumbled about 0.5 percent during the week that just passed. In addition, sterling dipped 0.5 percent vs. the euro.
There has been an overall decline in the euro in recent weeks, but it was able to make a surge versus the sterling in recent trading days. In fact, the ECB has been very happy that the EUR is going lower. Traders feel that the weaker European single currency will really help the region’s economy. This comes at a time when the Eurozone is deep in the debt crisis. Officials from the ECB say that the weak euro is not a cause for concern.
The Aussie was one of the hardest hit currencies during last week’s trading session. Investors felt that it was time for them to sell the Aussie. T fact is that the Australian currency is still overvalued, so the losses which we have seen as of late are not a surprise. Instead, traders have decided that it is better for them to put their money into counter currencies. It may be that the Aussie will surge versus the yen and the greenback in the days ahead, so look to go long once you get a free chance.
The S&P 500 ended a five-week rally on the forecast that U.S. interest rates will be raised in the near future. This forecast has come on the rapidly improving American economy in the past year.
The thing is that we saw energy companies in the U.S. slump a whopping 3.7 percent amid Brent crude prices sliding to their lowest level in over two years. This has come on concern that global demand for the commodity is sliding.
There is some good news being that both Apple and Yahoo were able to surge during the recent trading week, which gives investors some hope that there will be a rally for leading equities in the coming week of trading.
It may be that the S&P 500 Index will jump in the coming days of trading.
We saw a lot of weakness when speaking of the crude oil binary option in the previous days of trading. We saw the commodity go lower and lower as the week dragged on due to the forecast that demand will go lower in the months ahead in leading consumer nations. In addition, a number of economies such as China and the Eurozone are underperforming, so look to go short once Monday’s trading gets going.
The gold binary option tumbled to near its lowest level in a year. This comes on waning demand for the meat l as a hedge against inflation. What may have also put a lot of downward pressure on the yellow metal is the much stronger dollar. Therefore, we may see gold go lower yet again if the dollar jumps in the week ahead.
The S&P 500 Index took a big hit during the week that just passed. Traders should actually go higher once Monday’s trading session gets going.