Technology Shares Produce a Wall Street Rally
The USD/JPY pair has hit a six-month high on an improving U.S. economy. The reality is that due to the improving American economy, there is more of an appetite for American assets. The USD/JPY pair climbed to the 102.28 level yesterday, the highest it has been since May 29. Investors are hoping for more gains later on.
There is a lot of weakness for the European single currency this morning. This is after the strength which we saw in recent trading days. Traders are of the view that it is the time to sell the EUR. This is after it made some very important gains in previously. This shows how the situation in the forex market can change very quickly. The biggest losses for the euro have been versus the pound and the dollar. Further declines are expected today.
We are seeing a lot of weakness for the Canadian economy at the moment. Investors are staying away from the Canadian dollar, which has led it to make some very big losses against the greenback. With the price of crude oil, the nation’s biggest export, on the decline, traders feel that it is the right time to sell the CAD. As long as this commodity dips, traders may want to stay away for the Canadian dollar.
There was a rally on Wall Street yesterday, led by technology shares. Traders felt like taking big risks when it came to investing in the financial markets. This is after equities showed a lack of direction during Tuesday’s trading session.
One of the other factors which were key in boosting shares was the positive consumer confidence data.
The S&P 500 Index climbed 0.3 percent to the 1,807.23 level. The Dow Jones managed to advance 24.53 points, or 0.2 percent, to 16,097.33.
Hewlett Packard jumped 9.05 percent to $27.36. Intel rose 1.06 percent to $23.90. Oracle climbed 1.03 percent to $35.29.
It is likely that there will be another rally this afternoon.
Crude oil futures are trading lower as of now by $1.37 at the $92.31 price level. Traders are in the mood to ditch the crude oil binary option at the moment, as there is optimism following the Iran nuclear deal. This has led the commodity to trade near its lowest level in six months. It is important to take into account that crude oil stockpiles climbed for the 10th week in a row. The black gold advanced yesterday by 1.5 percent, showing how quick prices can change.
We saw a lot of bullishness when it came to the gold binary option during yesterday’s trading session. Investors seemed to be in the mood to take some big risks with regards to metals. However, there is a lack of risk appetite with gold this morning. This is why the commodity is down $1. By looking at the bigger picture, it is apparent that traders just do not feel that it is the time for them to trade in commodities.
One of the best performing indices in recent days this has been the Dow Jones. It continues to go form strength to strength, as investors feel that there are still more returns to be made from the widely traded asset. One of the key factors which have boosted the Dow has been the positive economic data published from the American economy. Amongst the most important has been the housing data, as this is a key indicator of American economic health. Look to go long in the Dow today.