The dollar was one of the stronger currencies yesterday, but its gains were not convincing enough. This is why we are seeing a certain amount of weakness this morning. It has slumped versus the majority of its main currency counterparts. Traders simply do not feel that it is worth it for them to go long on the greenback at the moment. This is because it is not offering them the returns which they deserve. The dollar is trading lower today versus the pound, euro and the loonie. More losses may be on the cards in the hours ahead.
We are seeing a lot of strength when it comes to the European single currency this morning. The EUR/USD forex binary option is trading higher this morning by 0.17 percent at the $1.3933 level. The euro has also managed to make inroads into a number of its other peers today. European stocks are trading higher ahead of the statement from the European Central Bank. Investors foresee there to be more gains for the EUR.
It is the case that the pound sterling is not as bullish against its peers this morning. However, it has managed to edge higher versus the greenback and several of its other peers. The fact is that the British economy is being backed by a housing boom. On the other hand, the announcement by Barclays to slash thousands of jobs may take its toll on the GBP this afternoon. Therefore, be cautious while trading the sterling this Thursday.
It was the case that there was a big stock selloff on Tuesday. The thing is that traders felt that it was time for them to go long on the key equities on Wednesday. Investors felt that stocks were oversold, which gave them enough confidence to go higher on a number of banking and tech shares.
The Dow Jones Industrial Average made gains of 0.72 percent to the 16,518.54. The S&P 500 surged 0.56 percent to 1,878.21.
Bank of America Corp. climbed 0.48 percent to $14.80. AT&T Inc. jumped 0.76 percent to $35.76.
There will be much important economic data from the Eurozone in the hours ahead.
The commodity was much higher during some point yesterday due to the supply of the commodity declining. The thing is that crude prices as lower as of now by about 40 cents, as traders just do not feel that it is the time for them to go long. It seems that crude’s gains have been overdone today. Traders simply feel that the time now is to sell the commodity as it is simply not offering them high enough returns. Traders are of the view that the weakness for crude oil will continue into the latter hours of trading, so look to go short.
Gold is trading higher this morning by $3.00 at $1,221.90. The commodity has been able to gain on the much weaker dollar. With the gold binary option priced in dollars, the strength of the commodity this morning is of no surprise. The thing is that the gains for the commodity have not been strong enough to shows that it is reliable. Therefore, buy hourly rather than daily Call options in the commodity today.
It was the case that the S&P 500 was able to make some very important gains on Wednesday. Traders had a return of confidence as figures from the leading American companies showed that consumer confidence was at a decent level. Investors feel that the S&P 500’s gains may be extended today. Therefore, going long is the way to go.