Yen Dives as Traders Take Big Risks
There is mixed behavior when speaking of the U.S. dollar today. Investors are not sure if they should go long or short as there are so many opportunities in the forex market at the moment. This is why you want to follow all of the economic data as it is released from the news wires as the trading day passes by. The dollar has surged vs. the euro, but slid against the Aussie.
The pound is trading higher versus 14 out of 16 of its major currency counterparts this morning. Investors feel that they should buy into the currency this morning as growth in the U.K has reached levels prior to the 2008 economic crisis. Among the most impressive gains have been made versus the yen and the dollar. It is expected that the GDP climbed in the fourth quarter by 2.8 percent. It is likely that the pound will build on its gains this afternoon, so look to go long.
The yen is very weak as of now after there was a curbing in the declines of Asian stocks. Most of them still went lower, but the declines were reversed to a certain extent. Moreover, traders are in the mood to take some big risks in the forex market today. The USD/JPY pair is trading higher at the moment by 0.49 percent at the 103.06 yen level.
There was another day of losses when it came to U.S. stocks yesterday. Investors were simply not in the mood to take big risks when it came to the financial markets. This is understandable, and why you will want to be very careful if you want to avoid taking some big risks. However, it may be that the losses were overdone, and why you may want to be more of a risk-taker when it comes to U.S. equities.
The Dow Jones Industrial Average dived 0.26 percent to 15,837.88. The S&P 500 slipped 0.49 percent to 1,781.56.
Banking stocks were very badly hit, s traders felt like they were simply too many risks on Monday afternoon.
It is true that the crude oil binary option took a very big hit yesterday afternoon and evening following the losses which we saw for U.S. stocks. The good news is that the black gold is trading higher this morning by 49 cents at $96.22. Some of this is due to crude oil being oversold yesterday. Moreover, the dollar is losing ground, which has led to a rally in energies in the latest round of trading. Positive data later on may give crude prices a further boost.
We did see a lot of strength when speaking of the gold binary option in previous trading days. However, investors have decided that it is time to take out their profits and ditch the yellow metal. This is as there is a lot more confidence in risky assets this morning. Gold futures are lower by about $10. There is likely to be further losses for gold futures in the hours ahead. Therefore, get ready to open Puts in the metal.
We have seen the Dow Jones take a very big beating in recent trading days as investors felt that the leading U.S. index was overinflated. Moreover, investors did not have enough risk appetite, which ended up hurting very volatile assets. There will be a lot of economic data coming out of the Eurozone and the U.S. later this Tuesday. As a result, make sure to follow these events closely while trading the Dow.