S&P 500 Surges to Record on Stimulus Expectations!
The dollar is the strongest currency this morning. It is trading higher against the euro, pound, Aussie and loonie. The gains for the U.S. currency come after many days of weakness. One of the main reasons why traders have been attracted to the U.S. currency today is due to the rally in equities on Wall Street yesterday. Also, with the Fed being likely to extend stimulus, this encouraged forex traders to go long on the U.S. currency.
When speaking of weak currencies this morning the euro seems to come to mind. The EUR is trading lower on all fronts, as traders feel that there are still a lot of problems with the region. The EUR/USD pair is trading lower as of now by 0.26 percent at the $1.3452 level. The euro has also made heavy losses versus the GBP. Positive data is needed today in order to revive the European single currency.
The yen is one of the weakest currencies today. Investors are simply not in the mood to take risks when it comes to the Japanese yen this morning. This is following the gains in Japanese stocks and indices. Whenever Japanese stocks advance, traders tend to take their funds out of the yen. The yen has made big losses versus the dollar and the pound during this morning’s trading session. Be wary of putting your money into the JPY this Thursday.
The S&P 500 rose to its highest level ever on the forecast that new Federal Reserve Governor Janet Yellen will extend the U.S. economic stimulus program. This is in contrast to what was thought by analysts previously.
The S&P 500 Index made gains of 0.8 percent to 1,782. The Dow Jones Industrial Average climbed 70.96 points, or 0.5 percent, to 15,821.63. This is also a record for the Dow Jones.
Facebook jumped 4.53 percent to $48.71. Cisco advanced 1.14 percent to $24.00. Pfizer climbed 1.56 percent to $31.87.
It is very likely that there will be further gains later today.
The crude oil binary option is about level this morning at the $93.88 price level. Thus was after posting the biggest increase in a week yesterday. This came on the forecast that stockpiles climbed to the highest level since June. The commodity jumped 0.9 percent on Wednesday to the $93.88 price level. This was a relief to traders, as there has been a lot of downward pressure on the black gold in recent trading weeks. It may be that crude prices have bottomed out; helping explain why the commodity was able to climb notably yesterday. The unrest in Libya is still support oil prices to a certain extent.
There has been a lot of weakness when it has come to gold lately. Traders have just no felt that it is worth it for them to take risks when it comes to the precious metal. This is as the greenback upheld strength to a certain extent. The metal is trading higher this morning by $15 following the rally capped on Wall Street yesterday. Expect more gains for gold this Thursday afternoon.
There is a lot of weakness for the Japanese currency today. It is important to take into account that the yen upheld its strength to a certain extent versus the dollar in previous trading session. However, we are seeing the yen dive today. Investors are of the view that the USD/JPY may surged further in the hours ahead. With this in mind, look to go long on the pair.