U.S. Stocks and Indexes Extend All-Time Highs
The U.S. dollar continues to make inroads into the Japanese yen this morning. The USD/JPY pair is higher as of now by 0.07 percent at the 104.19 yen level. The pair is approaching a five-year high, as investors prepare for the Federal Reserve not to cut stimulus, and the Bank of Japan to boost stimulus. This shows the divergence in the monetary policy of the policymakers in both the U.S. and Japan.
There is a lot of weakness when it comes to the euro this morning. Traders have decided to ditch the European single currency and put their funds into alternatives. This has led the euro to make some very big declines versus the pound and the dollar. The fact is that the euro made big gains in previous weeks, but traders are wary of the EUR following the downgrade of Europe’s credit rating in the previous week.
The Canadian dollar is trading higher for the third straight trading day after manufacturers boosted the economy. In addition, GDP expanded for the fourth straight month in October. The CAD is trading higher versus most of its major currency counterparts after U.S. officials stated that the U.S. economy is growing fast enough that stimulus can be cut further. With GDP being boosted on both sides of the border; this may support a comeback for the loonie at least in the short-medium term.
U.S. stocks were able to extend their gains yesterday. The same was also true of indexes, which closed at all-time highs. This is a great way to start the holiday season, especially as there has been so much uncertainty lately. The fact of the matter is that the growth rate of the American economy has been upgraded by the IMF and other bodies.
The Dow Jones Industrial Average climbed 0.45 percent to 16,294.61. The Nasdaq Composite Index surged 1.08 percent to 4,148.90.
Facebook managed to climb 4.81 percent to $57.77. Cisco gained 2.08 percent to $21.57.
The crude oil binary option is trading lower for the second straight trading day on fears that last week’s gains are unsustainable. It is trading lower this morning by 15 cents at the $98.76 level. This has led it to trim its first monthly advance since August. Prices are still higher by over 6 percent this month. With U.S. gasoline stockpiles in the U.S. forecasted to expand for the fifth week, this has led to a lot of downward pressure on stockpiles in the past two trading days.
The gold binary option is trading around the $1,197.00 level, but this has not been enough to push it above the $1,200.00 mark. What we have seen in the past few trading days is little volatility for the precious metal. This is largely due to there being thin trading amid the holiday season. This means that it may not be so profitable by buying into gold futures at the moment. You may want to wait until thee are clearer signs from the global economy.
There continues to be a lot of strength when it comes to the most traded American indices these days. This is the case because they were oversold in the former part of the previous trading week. There is a lot of optimism amid the holiday season. Traders are more willing to take risks, as U.S. economic outlook has been upgraded by the IMF. Traders have taken this into account, so go long on the S&P 500 later on.