Traders Eying Dow Jones Comeback- 18/05/2014

Currencies

USD

The dollar has been one of the biggest movers in recent trading sessions. It was weaker in the former part of last week’s trading session. The thing is that it was able to cap important gains as the trading week passed by. The dollar did make a comeback on Thursday and Friday, as investors understood just how undervalued the American currency is. With the economy improving in the U.S., it is likely that there will be gains for the USD in the coming week of trading. Therefore, get ready to study the movement of the USD closely.

EUR

We saw a lot of weakness for the European single currency last week. Actually, it declined for the second straight trading week. It capped the biggest two-week decline versus the greenback since November on the concern that the Eurozone economy is struggling. The euro also ended up making losses against a number of its other peers. This is why you will need to be cautious while trading the forex market in the week ahead if you intend on making high returns from the euro.

JPY

The yen rallied versus the dollar a many of its other main peers last week. This came as Japan’s economy grew at the fastest pace since 2011. Japan’s economy grew by an annualized 5.9 percent from the previous quarter. This came on increased investment from leading economies and on consumers becoming much more confident. There will be a lot of economic data published from Japan and other countries in East Asia his coming week, which means that you will need to be very focused while trading the yen.

 

Stocks/Indices

It was the case that U.S. stocks ended Friday’s trading session higher. The thing is that they actually went lower last week. Investors decided to go short for much of last week, as there were fears ahead of the release of countless economic figures. Fortunately, these figures came out positive as a whole.

There was more confidence in the leading U.S. stocks as the trading week dragged on. Investors realized that the losses were exaggerated, which w very much on their minds while they trade.

There is to to be much data from the U.S. and U.K. in the coming days of trading, so get ready to open your trades.

 

Commodities

Crude Oil

We saw the crude oil binary option make some very important gains during last week’s trading session. This came about on the Ukraine tension. It is expected that supplies from Russia will be surprised, which automatically pushed oil prices higher. In addition, with U.S. stockpiles sliding, this naturally gave the commodity a big boost last week. Traders are hoping that the commodity will continue to gain in the coming trading week. Weekly Call options will be where the action is at.

Gold

Gold did not go anywhere on Friday, but it was able to cap a week of gains. This was due to the commodity being undervalued, and the Ukraine unrest attracting a number of buyers. With gold slumping a whopping 28 percent last year, this seems to be low enough. Traders feel that the commodity will gain in the next few days of trading.

 

Wild Card

Dow Jones

When looking at the previous week of trading, the Dow Jones was not the performer which we hoped it would be. The leading U.S. index ended up making losses for the week as a whole. With data form the U.S. improving, there may end up being a bullish comeback for the Dow Jones.