Stocks Dive as Investors Await Stimulus Signals
There has been much weakness for the dollar in the past few trading days. When it has come to the forex market, traders have been in favor of taking some big risks. Therefore, the volatility has been much greater than usual. Just when leading experts thought investors would sit on the sidelines, the exact opposite happened. The biggest losses for the dollar lately have been versus the Swiss franc, euro and the British pound.
The euro was weaker for certain parts of yesterday morning’s trading session, but the good news is that the euro has been able to make an impressive comeback since then. This shows just how quickly that the situation can change in the currency market each trading day. The euro’s most impressive gains have been made versus the dollar, pound and the yen. Look for the euro to go even higher in the next few hours of trading.
The Australian dollar is one of the most bullish currencies at the moment. The most impressive advances have been capped versus the dollar and the pound. It seems that investors are just in the mood to take risks when it comes to the currency market these days. This sort of temperament is set to continue later on. Therefore, start opening Call options in the AUD/USD forex binary option this Wednesday morning.
It is unfortunate to say that stocks were not able to go higher on Tuesday. In fact, the leading U.S. stocks ended up making some very big declines during yesterday’s trading session. In the past two trading days there has just been a lack of confidence in American equities. Investors have taken it upon themselves to put their money in alternative assets.
Banking stocks were particularly hit on Tuesday. Tech stocks also felt the heat in the latter hours of trading.
After much bearishness in U.S. stocks lately, they may actually make a comeback once the U.S. market opens.
There was a lot of movement when it came to crude oil yesterday. Investors sold off the commodity for much of the session, but there were times when it was also marginally higher. There are a lot of global economic and political events driving the commodity at the moment. Traders really are not sure whether they should buy or sell the black gold due to the diversity of factors. The best way to trade today is to wait and see what data is published from the U.S. economy such as the crude oil inventories data.
The gold binary option was higher by about $2 for much of yesterday’s trading session. There has been a return of risk appetite into the metal as of late. Traders have realized that gold is somewhat undervalued. Therefore, the gains which we are seeing for gold are of no surprise. This means that you may want to start going long on gold in order to make some high returns. Gold may build on its current gains this Wednesday, so make sure to get on the bandwagon.
The Dow Jones has not performed as well as many traders had hoped lately. This is due to investors waiting on the sidelines until there are clearer signals in connection to additional stimulus from the U.S. economy. With speeches by U.S. political leaders likely today, make sure you follow these closely. Moreover, the housing data from the U.S. economy will be key in determining if the Dow Jones will end the U.S. session higher.