Yen Dips to a 4-Month Low vs. the Dollar

Yen Dips to a 4-Month Low vs. the Dollar

Currencies

USD

The dollar is one of the strongest currencies this morning following a heavy day of data yesterday. Investors feel that the greenback has been somewhat oversold in recent trading days, which makes the current strength only natural. The EUR/USD pair is trading lower as of now by 0.1 percent at the $1.3427 level. The dollar has also gained a lot of ground versus the Swiss franc and Australian dollar.

JPY

There is a lot of weakness for the Japanese yen this morning. In fact, the yen is trading at a fourth month low versus the dollar. This comes as Japan is set to go ahead with some very aggressive monetary stimulus in the near future. The increase of money supply in any economy results in much weakness for the respective currency. Traders will want to open Call options in the USD/JPY pair.

CAD

The Canadian dollar has been able to gain on all fronts on statements by Fed Chairman Ben Bernanke that the economic stimulus will not be cutback. Moreover, there has been an improvement in the economy of Canada, which has in turn given the loonie a much needed boost. The good news is that the CAD is trading higher this morning versus all 16 of its major currency counterparts. Expect this behavior to continue into the afternoon.

 

Stocks/Indices

Stocks went lower yesterday again during yesterday’s trading session. Investors were just not in the mood to take risks when it came to the most traded stock on Wednesday. They preferred to go short, as they felt the gains made last week were exaggerated. Therefore, the mentality at the moment when speak in of investors is the safe alternative. There will need to be a lot of positive economic data in the hours ahead in order to boost U.S. equities later.

The Dow Jones Industrial Average dived 0.41 percent to 15,900.82. The Nasdaq Composite Index dipped 0.26 percent to 3,921.27.

Bank of America slipped 0.39 percent to $15.14. Cisco Systems slid 0.89 percent to $21.23.

 

Commodities

Crude Oil

Crude oil futures a trading lower for a second straight trading day. The commodity has tumbled this morning by 18 cents at the $93.67 level. The weakness today comes as crude oil inventories surged for a ninth straight trading week. The increase in crude supplies in America is really hurting crude prices. The result is investors taken it upon themselves to sell the commodity. Another reason for the weak prices today is the much stronger dollar. Start selling crude oil once you get a chance this morning.

Gold

The gold binary option is trading near its lowest level in four months. Investors have had a lack of confidence for gold this morning. A factor which has led traders to ditch the yellow metal is the much stronger dollar. The gold binary option is trading lower by a whopping $13.00 in the latest trading.  The fact is that there is little confidence in metals this morning, as prices are seen as inflated. You will need to be cautious while trading gold futures today.

 

Wild Card

Gold

If you are someone who likes to trade the financial markets carefully when you will want to follow the unravelling of economic events throughout today’s trading session. It could not be predicted that gold would be as low as it is now. However, economies events have taken their tool of how traders will invest their funds. With the forecast that gold will go even lower, opening Put options at the right price may be a wise trade.