U.S. Stocks Tumble on Weak Unemployment Figures
There is mixed behavior when speaking of the U.S. dollar in the latest round of trading. The EUR/USD forex pair is lower as of now by 0.24 percent at $1.3638. The GBP/USD pair has slumped 0.03 percent to $1.6447. On the other hand, the dollar has lost a lot of ground versus the loonie and the Aussie.
The European single currency is trading lower on all fronts this morning. Traders are of view that is worth it for them to ditch the euro as there is a lack of confidence in the forex market. This has been the case since the beginning of today’s trading session. Among the biggest losses for the euro have been made versus the pound and the dollar. The weakness may well continue into late night trading. Get ready to start selling the EUR this morning.
There has been a lot of weakness for the Canadian dollar as of late. Traders just feel that it was not the right time for them to go long on the loonie. However, the CAD has made a bullish comeback as there are still signals that the U.S. economy will continue to grow at a steady pace. The unemployment figures were weak yesterday, but the good news is that manufacturing came out better than was expected. As a result, traders feel like buying the CAD is the way to go.
U.S. stocks went much lower yesterday after sliding from near their highest ever level. This also hurt American indices too, with the Dow Jones slid more than 100 points. It seems that stocks were very much undervalued recently, leading investors to unwind their long positions.
The Dow Jones Industrial Average dived 0.82 percent to 16,441.35. The Nasdaq Composite Index slipped 0.8 percent to 4,143.07. The S&P 500 made big losses of 0.89 percent to the 1,831.98 level.
Bank of America dipped 3.4 percent to $16.10. Facebook gained 0.11 percent to $54.71. Intel dived 0.62 percent to $25.79.
Crude oil futures are trading near their lowest price level in a month on the prediction that the Fed will cut stimulus further. Investors are of the view that such a move could hurt the U.S. economy. As a result, this may have a negative impact on the demand for the black gold. The commodity is trading higher by about 6 cents after making some very big losses during yesterday’s trading session. It seems like the positive U.S. economic data has put a lot of downward pressure on the commodity.
The gold binary option is eying its biggest weekly gains since October. Traders just feel that it is the time for them to take risks when it comes to the yellow metal. The fact is that the demand for the commodity is still reasonably strong. The demand from both India and China is strong and may actually grow. Therefore, it is no surprise that gold prices have started 2014 much higher. The gold binary option is higher this morning by $7.50 at $1,232.70. Further gains during afternoon trading are likely.
It was unfortunate to see the Dow Jones make some very big losses during yesterday’s trading session. The problem is that the data from the American economy was not so strong. This is how traders felt like that they should simply not take risks. The way the market moves today will be very dependent on the release of economic data from the leading economies. Dow bullishness is likely later.