S&P 500 Falls from Record on the Release of Weak Economic Data

S&P 500 Falls from Record on the Release of Weak Economic Data!

Currencies

USD

The greenback is eying its eighth straight week of gains versus the yen. Also, the dollar is set to cap its first five-day gain in a month. With the U.S. economy showing overall strength in recent weeks, this has led to higher demand for the American currency. The EUR/USD pair is lower as of now by 0.19 percent at the $1.3636 level. The AUD/USD has advanced 0.15 percent to 88.79 U.S. cents.

GBP

There is mixed behavior when speaking of the British pound today. On one hand, it is trading lower versus the greenback. On the other hand, the pound has made inroads into the euro. This all sums up how the GBP has been trading during the current trading week. There has been an improving British economy, but the strength of the dollar has ended up hurting the pound sterling. As a result, you will want to look into opening Put options in the GBP/USD pair.

CAD

The Canadian dollar fell from its lowest level in three year versus the U.S. dollar. This is a relief, as the CAD was very undervalued. With the forecast to be lower U.S. interest rates for a long time period, this has led investors to raise the outlook for both the American and Canadian economies. The result has been the CAD making impressive inroads in the USD and a number of its other peers during this morning’s trading session.

Stocks/Indices

Stocks in the U.S. dipped yesterday, pushing the S&P 500 down from its highest level level. One of the main reasons for the drop yesterday was due to the release of U.S. economic data that was not positive. For example, the unemployment claims was not as convincing as traders would have liked. The slide in equities was a natural reaction of the Fed’s decision to cut stimulus.

The Nasdaq Composite index dived 0.29 percent to 4,058.13. The S&P 500 made losses of 0.06 percent to 1,809.60.

Commodities

Crude Oil

Crude oil is trading lower this morning by 21 cents at the $98.83 price level. This is after the commodity touched its highest level in two months during yesterday’s trading session. The fact is that traders have taken the chance to profit from the gains which they have made recently. Crude oil advanced a whopping 1 percent yesterday as the American economy improved overall. It seems that investors have more confidence in the black gold following the U.S. Federal Reserve’s decision to cut economic stimulus. However, it is expected that crude prices will slide next week.

Gold

The price of gold is up a touch during Friday morning’s trading session. The commodity dipped 2.5 percent to $1,888.68 yesterday, the lowest settlement since August 3, 2010. It is expected that the commodity will dip further by the end of the year. This means that traders may want to refrain from opening Call options in the commodity. However, there may actually be gains in the hours ahead, but this commodity continues to act in a very unpredictable manner. Make sure to follow the movement of the dollar while trade gold today.

Wild Card

Crude Oil

Crude oil is one of the most in demand commodities at the moment. Investors have been in the mood to buy into the commodity as it has been offering them some very high returns indeed. However, the commodity is lower this morning, as there is a feeling that the gains which we saw during yesterday’s trading session may have been overdone. As a result, start opening daily Put options.