USD Headed for Best January Since 2010
There has been a lot of movement in the currency market during the current week of trading. The dollar is headed for the best January of gains since 2010. All of this comes prior to data from America that is expected to show that traders increased spending for an eighth straight month in a row. The EUR/USD pair is lower this morning by 0.07 percent at the $1.3545 level.
The pound sterling is by far the weakest currency in the latest round of trading. Investors are simply not in the mood to take risks when it comes to the British pound this morning. This is due to some of the risks which we are seeing in the British economy. There are fears that the housing sector is overheating. Among the biggest losses for the British currency have been made versus the euro and the dollar. Investors are of the view that the pound will continue declining versus its peers during afternoon trading.
The Aussie is eying its first five-day gain three weeks versus the U.S. currency. It is important to take into account that there was much weakness for the AUD/USD forex binary option in the previous two weeks of trading. Therefore, the gains which we are seeing this morning are a great relief. It may be that the Australian dollar will build on its gains later.
We did see days this week when U.S. stocks were hit very hard. The good news is that the S&P 500 Index was able to make a bullish comeback during yesterday’s trading session. Investors just felt that they should buy into the top stocks on Wall Street yesterday. This also enabled the S&P 500 to reverse the losses which it made during the early part of the current trading week.
Facebook jumped by a whopping 14 percent yesterday, as the company said that more of its advertising revenue came from mobile devices.
It may be that there will be another rally later on, so be prepared for this.
The crude oil binary option is trading lower this morning by 43 cents at $97.80. Traders have taken it upon themselves to go short on the commodity this morning after it surged in previous trading days. There is a feeling among traders that the gains we saw were overdone. In other words, traders have decided to take out their profits in the most recent trading. It is true that there is more confidence in the markets after the rally in U.S. equities yesterday. It seems the upward pattern has not been seen in crude, so be cautious.
Gold has been hit hard recently, which is why it is a relief that the metal has managed to gain by about $3 during this morning’s trading session. The recent weakness for gold futures may have been due to the resurgent dollar. Moreover, the rally in U.S. stocks yesterday put much downward pressure on the yellow metal. It may be that gold will be able to build on its gains this afternoon.
Gold seems to be one of the hottest commodities this Friday morning. Traders realize just how undervalued the commodity is at the moment. This may turn out to lend it further sport as the trading day passes by. One thing which will need to happen is the greenback to weakness. Such a move would surely boost the gold binary option. Look to open daily Call options in gold to make some very high returns.