U.S. Stocks Take the Heat on Tuesday
The dollar still seems to be the currency of choice among forex traders at the moment. We saw the U.S. dollar jump above 110 yen for the first time since August 2008. All of this has come prior to a jobs report which is set to show that companies added over 200,000 workers for a sixth month in a row. We saw the greenback jump versus the majority of its 16 major currency counterparts in the most recent trading. This has come on the improving economy making it more likely that the Fed will increase interest rates. The EUR/USD forex binary option is trading lower this morning by 0.09 percent at the $1.2620 level. The dollar is set to continue making inroads into its peers.
We have seen the euro tumble to its lowest level in two years vs. the dollar. This has come as slowing inflation made it more likely that the ECB will go ahead with very aggressive stimulus measures yet again in the near future. The EUR has seen its worst quarter since 2010. This is as the European Central Bank aims to improve its balance sheet. Traders may continue selling a currency that has tumbled 10 percent since hitting a two-and-a-half year high in May.
One of the weakest currencies we have seen as of late is the Canadian dollar. We have seen it trade at its lowest level since March versus the U.S. dollar. This has come prior to data that is expected to show that GDP in July was little changed from a Month earlier. However, the loonie has risen in the past three months of trading versus the nine most traded peers. There may actually been an upsurge for the loonie today, as it was oversold during yesterday’s trading session.
The S&P 500 jumped in the third quarter of the year, but there were losses yesterday for the leading American index. In fact, there were losses for U.S. stocks and indices during yesterday’s trading session.
The S&P 500 made losses of 0.28 percent to finish trading at the 1,972.29 level. The Dow Jones Industrial Average added 0.17 percent to 17,042.90.
Bank of America Corp. added 0.24 percent to $17.05. Ebay Inc. advanced 7.54 percent to $56.63. Intel Corp. lost 0.23 percent to $34.82.
There were big losses yesterday, as traders felt that many shares were overbought. In addition, it is forecasted that a number of leading companies will miss forecasts.
What’s more, consumer confidence unexpectedly decline in the U.S.in the month of September. There will need to be a string of positive U.S. data to give equities the strength they need.
We are seeing the crude oil binary option trade higher this morning by 17 cents at the $91.33 level. Traders really feel that now is the time for them to go long on the black gold due to the very high returns which it has on offer for them. Further gains may be on the cards in the coming hours of trading today.
We saw the gold binary option tumbled by several dollars already this morning, as traders are in the mood to take their money out of the yellow metal. Instead, the feel it is better to put it into riskier assets due to the higher returns which are on offer. Therefore, going short may be where the action is at today.
The index made big losses yesterday, but traders are of the view that going long will bring profit today.