U.S. Stocks Make a Comeback Before Fed Meeting
The U.S. dollar is trading for a five year high versus the Japanese yen. This comes prior to the two-day meeting of the U.S. Federal Reserve. The demand for the greenback also comes before data today form the U.S. is forecasted to show that inflation picked up in the month of November. The dollar is also strong because Fed tapering is more likely than traders think.
The European single currency is showing a lack of direction this morning prior to a data release from Germany which is expected to show that investors’ confidence climbed to its highest level in four years. This is vital, as Germany has the strongest economy in the region. It is true that there is a certain degree of weakness for the European single currency today. However, there are signs that the EUR may gain ground vs. the USD and GBP later on.
There has been a lot of weakness for the Australian dollar in recent trading weeks. Among the biggest losses have been made versus the U.S. dollar and New Zealand dollar. Traders have taken it upon themselves to ditch the Aussie, as it seems not to be offering traders high enough returns. Therefore, you will need to follow all the economic data from Australia in the next day or so before opening positions in the AUD/USD. This is because signs are not clear enough now.
Stocks in America advanced on Monday following a week which saw the biggest stock slump since the month of August. It was good to see traders have a rebound of confidence yesterday. The Fed meeting is set to start this Tuesday.
The Dow Jones Industrial Average advanced 0.82 percent to 15,884.57. The Nasdaq Composite Index climbed 0.71 percent to 4,029.52. The S&P 500 jumped 0.63 percent to 1,786.54.
Facebook rose 0.92 percent to $53.81. Cisco Systems jumped 2.17 percent to $20.68.
There may end up being bigger gains during the U.S. session today.
The crude oil binary option is lower this morning by 19 cents at the $97.58 level. We are seeing the majority of commodities lower this morning, which has been playing on traders’ minds. The losses this morning come as U.S. gasoline inventories advance 1.75 million barrels in the seven days ending December 13. This has been built on three weeks of gains. It is important to take into account that the commodity climbed 88 cents during yesterday’s trading session. There may actually be a comeback for the commodity during afternoon trading.
The gold binary option is trading lower by 31% during the current year. This is the worst run for the commodity in over a decade. Gold futures were slightly lower this morning, which is set to lead to the yellow metal to climb later today. The reality is that the gold binary option is greatly undervalued. Traders are looking for good opportunities when it comes to the commodities market. To make high returns today, then look to open Call options in gold futures once you get a chance.
One of the leading commodities at the moment is crude oil. This is after it made some very big gains yesterday, which is as traders are of the view that it is the time they rethink their trading portfolios. It is unfortunate to see that crude prices are lower this morning. However, you need to understand that many investors are sitting on the sidelines until the signs are clearer from the global economy.