U.S. Stocks Surge on Renewed Stimulus Expectations

U.S. Stocks Surge on Renewed Stimulus Expectations

Currencies

USD

The dollar actually ended the week lower versus a number of its main peers, despite analysts predicting the opposite. With the American economy posting weak data, this has led to the forecast of additional stimulus for the U.S. economy. As a result, traders have taken the position to sell the greenback. The USD also capped a week of losses versus the yen. However, the dollar did make some every important gains versus the loonie last week.

EUR

There was a lot of strength for the European single currency last week. Traders were in the mood to take risks due to the determination by members of the ECB to put an end to the current debt crisis. Moreover, investors decided to go long on the euro, even though unemployment in the Eurozone stands at 12 percent. The euro is likely to make additional gains in the days ahead, so look to open Calls in the EUR/GBP.

CAD

The CAD was by far the weakest of the major currencies last week. This comes on the prediction that the nation’s central bank will go ahead with slashing stimulus. The loonie slid against all 16 of its major currency counterparts during the previous trading week. The nation’s trade deficit surged to nine times the forecast of economists. Therefore, it is no wonder that the Canadian dollar has slid so much. The currency may actually climb in the week ahead, as it is undervalued to some extent.

Stocks/Indices

There was weakness for U.S. stocks for much of last week’s trading session. Investors felt that it was worth it for them to ditch American stocks for the majority of last week due to the expected cut in stimulus. However, with several days of poor economic data, this led to forecasts that there may be a turnaround and additional stimulus on a weakening American economy.

The S&P 500 ended higher for the week due to Friday’s boost. The index rose on Friday alone by 0.2 percent to 1,842.37. It actually surged for the week by 0.6 percent, cuttings its slide in 2014 to 0.3 percent.

Commodities

Crude Oil

Crude oil futures surged the most in a month on Friday, cutting its losses for the previous trading week. In fact, prior to Friday’s session the commodity hit a month low. In fact, the black gold was weak for much of last week’s trading session. The commodity advanced 1.2 percent to $92.72 on Friday. The advances come on forecasts on additional U.S. stimulus on the weak American economic data. Strength in the week ahead is highly likely for crude.

Gold

It was great to see that gold ended the trading week on a high. This was after signs showed that the yellow metal could be hit very hard. In fact, gold was able to climb the most in a week on Friday due to weak U.S. jobs data increasing the likelihood that the Fed will go ahead with some very aggressive stimulus measures in the near future. This is in contrast to what was previously stated by leading global analysts. Gold may continue its bullishness in the days ahead.

Wild Card

S&P 500

One of the hottest indices during last week’s trading session was the S&P 500. Traders were in favor of taking risks when it came to indexes on the chance of making some very high returns. This was despite the risks which were in the financial markets. It may be that the S&P 500 could climb further in the coming week of trading, so get ready to open Calls.