U.S. Stocks Surge to Record on Positive Jobs Data
The good news is that the U.S. dollar was able to rise to its highest level in six years. This is following the Fed reiterating its target interest rate forecast on Wednesday. This underlines the difference between the monetary policy between Japan and the U.S. The dollar has gone from strength to strength versus the yen since the beginning of yesterday’s trading session. The thing is that the dollar made very big losses versus a number of is other peers during yesterday’s trading session. Among the biggest losses were made versus the Aussie and the loonie. Trader should look to go long on the USD/JPY forex currency pair this morning.
The pound was surprisingly very bullish on Thursday, as polls showed that there was more support for a union rather than an independent Scotland. The positive news is that the sterling climbed for the third straight trading day against the euro. It managed to hit its highest level in two years amid Scotland’s electorate voting to stay or leave the union. The sterling was also able to climb versus the majority of its other 16 main currency counterparts. Traders are hoping that pound sterling will continue gaining today.
The Swiss franc was able to gain after the Swiss National Bank kept its interest rate target at zero to 0.25 percent. It is vital that you follow what goes on with regards to monetary policy in Switzerland, as many central banks are taking steps to weaken their currencies in order to review their economies. If we look at how the Swiss franc has been trading, we can at least say that it was able to make inroads into the greenback and other leading peers. Traders may want to continue to buy into the Swiss franc and ditch the dollar as Friday’s trading day drags on.
It was great to see that there was a bullish comeback when speaking of U.S. equities during yesterday’s trading session. In fact, American stocks were able to gain for a third straight trading day. This sent the most traded U.S. does to record high levels. This came as fewer Americans filed for jobless claims.
The S&P 500 Index was able to jump 0.5 percent to the 2,011.39 level. The Dow Jones Industrial Average added 0.6 percent to 17,265.99.
Bank of America Corp. advanced 1.61 percent to the $17.04 level. Yahoo dipped 1.20 percent to $42.08. Microsoft Corp. made important gains of 0.34 percent to $46.48.
The crude oil binary option ended up making big losses yesterday. This came as there was a third day of gains for U.S. stocks. There was less demand for commodities such as crude oil and natural gas, which may drive traders away for yet another trading day. What really led traders to dich the black gold was the greenback jumped to its highest level in six years versus the yen. Investors are hoping that there will be a comeback with regards to crude oil futures.
We saw gold dip to an 8-month low, as traders ditch precious metals and haven assets in favor of risk assets. The risky assets included the most traded stocks and indices on Wall Street. It is likely that the gold binary option will continue going lower in the hours ahead. Therefore, daily Put options are the way to go this Friday.
The GBP/USD pair went much higher yesterday, and the pair is set to surge in the hours ahead. This means open your Call options now.