U.S. Stocks Go from Strength to Strength Last Week
The U.S. dollar was one of the biggest losers when it came to the currency market last week. The industrial production figures coming out negative for the U.S. turned out to hurt the greenback. The good news was that the USD was able to climb vs. the JPY last week. This is because demand for havens is very low.
There was a lot of strength for the pound sterling last week. This was due to the economic recovery in the U.K. turning out to be better than was expected. It managed to cap a second straight week of gains versus the dollar. A release to be followed in the days ahead will be the Bank of England’s minutes. Also, the pound was able to climb to its highest level in four years versus the Japanese yen. Traders feel the pound will be able to go even higher in the week ahead.
We saw some important gains for the Australian dollar last week. Among the most impressive advances were capped versus the yen. The Aussie was also able to make gains versus a number of is other main currency counterparts. The demand for the AUD is largely owed to the world’s leading central banks decided to go ahead with very aggressive stimulus measures.
Stocks on Wall Street were able to go from strength to strength during last week’s trading session. Investors felt that it was a good idea to take some big risks. This allowed some of the leading indexes to make record gains.
It was great to see U.S. stocks capped a sixth straight week of gains. This was largely due to the forecast of additional economic stimulus.
The S&P 500 surged 1.6 percent in the previous five trading days to 1,798.18. Other leading indexes also surged.
The crude oil binary option fell for a sixth straight trading week. This is the longest losing streak since 1998. The rising U.S. stockpiles countered the speculation that that Federal Reserve will maintain U.S. economic stimulus. The commodity ended up declining 0.8 percent last week. This comes as output expanded at its biggest pace since January 1989. It needs to be taken into account that an important factor driving crude prices lower is the Geneva talks with regards to Iran. A nuclear deal seems closer than ever. Therefore, if Iran increases output, this could push oil prices even lower. Therefore, get prepared to go short on crude oil futures once the trading week gets going.
Gold futures were under a lot of downward pressure last week, but they managed to make a bullish comeback as the week dragged on. The commodity jumped by $3 on Friday alone. With billionaire John Paulson betting that prices will pick up in the months ahead, this helped lead the commodity to climb. Investors have become more optimistic in the commodity as of late. This is following the declines which it has made during much of the current year.
We saw the Dow Jones extend its gains several times during last week’s trading session. This came as investors realized that there are plenty of profits to be made from the index. It seems that with the Fed set to extend their stimulus program, this has only encouraged traders to buying into the leading U.S. index. Moreover, earnings of some of the leading American companies came out much better than expected. This only encouraged traders to go long on the Dow. This means you should look into opening Call options in the Dow once Monday’s trading commences.