U.S. Stocks End the Week on a Low
We saw a lot of weakness for the greenback last week, as investors felt that it was worth it to put their money into alternative currencies. This was the mentality of traders, as they feel that the American economy is not growing at the desired pace. It is the right thing to do by ditching the U.S. currency. Among its biggest losses were capped versus the European single currency.
The British pound saw the biggest weekly fall in three months on weak economic data. With retail sales sliding, unemployment going higher and manufacturing data waning, it is no wonder that traders took it upon themselves to ditch the GBP. All of this led the pound sterling to drop from a four-year high versus the U.S. dollar. There are fears that the GBP will continue sliding in the coming days of trading.
The Australian dollar was hit very hard last week. This was after it was able to hold its ground in prior weeks. Among the biggest losses for the Aussie were versus the greenback and the yen. The reality is that the Australian economy is weaker and unemployment has risen recently. It is now up to the Reserve Bank of Australia to step in and get growth bank on track. One reason for the latest losses is Deutsche Bank’s prediction of a further 20 percent drop vs. the USD.
There was a lot of movement for U.S. stocks during last week’s trading session. Friday was losses, while previous trading days saw some gains. In fact, prior to Friday, the S&P 500 Index climbed to within three points of a record high.
The reality is that the S&P 500 tumbled nearly 6 percent at one point after hitting the record on January 15. However, it is fortunate to say that the leading American index has regained much of its value.
There have been weak economic figures as of late for the U.S. economy which has hurt U.S. stocks at times. Moreover, this may led the Fed to slow down tapering.
It is great to say that the crude oil binary option has risen for a sixth straight trading week. However, the gains could have been higher in the week that just passed if the commodity did not slide during Friday’s trading session. One of the reasons why last week’s gains were not as great as hoped was due to U.S. gasoline use fell to its lowest level in a month. Crude may slide in the coming trading week.
Gold was able to make some very important gains during the week that just passed by. This was despite there being days when the commodity was under certain pressure. The commodity seems to capitalize on the weaker dollar and the instability which we saw in global stocks. Moreover, investors are of the view that more gains lay ahead for the yellow metal. This means that now is the perfect time to open Calls. With this in mind, opening weekly Call options seems the way to go for gold this upcoming Monday.
One of the most volatile indexes these days is the S&P 500. Traders have not been sure which indexes which they should put their money into. The fact of the matter is that there S&P 500 is very volatile, but can offer traders very high returns. With stocks and indexes on Wall Street ending the trading week on a low, there may be a bullish comeback in the coming trading days.