Yen Extends Losses due to Global Economic Stimulus
There is mixed behavior for the U.S. dollar this morning. Investors are not sure whether they should buy or sell the U.S. currency. It was unexpected that the greenback would be able to uphold its strength the way it did this morning. On the one hand, it is trading lower versus the Aussie. This shows just how much volatility that there is the forex market this morning. Be cautious while trading the EUR/USD currency pair this Friday afternoon.
There is a lot of demand for the pound this morning. Investors feel that it is worth it for them to take risks when it comes to the pound sterling. This is following the big losses which it made during previous trading sessions. The most impressive gains this morning have been capped versus the dollar, euro and the yen. The pound is likely to build on its gains as the trading day passes by.
The Japanese yen extended its losses this morning on the forecast that global central banks will extend their stimulus plans. This has reduced the demand for haven currencies. The USD/JPY pair is trading higher this Friday morning by 0.13 percent at the 100.15 yen level. Recent Japanese data showed growth slowed, which will have big implications when the Bank of Japan meets next week. The yen has also lost a lot of ground versus the euro today.
As Yellen signals even more economic stimulus, this led the S&P 500 Index to extend its record. The gains for the leading stocks and indices on Wall Street also came yesterday following the positive economic figures which came out of the American economy. Moreover, the earnings for big U.S. companies came out better than was forecasted.
The Dow Jones Industrial Average advanced 0.4 percent to 15,876.22. The S&P 500 jumped 0.5 percent to 1,790.62.
Bank of America gained 1.09 percent to the $14.80 price level. Yahoo climbed 1.68 percent to $35.69.
Traders are hoping for stocks to extend their gains later.
Crude oil futures are trading higher this Friday morning by 45 cents at $94.21. Investors have a lot more confidence in crude oil this morning, as the commodity is showing a lack of direction. This has been the case since the beginning of this morning’s trading session. It is great to see that investors have so much confidence in the commodity today. This is following the losses which it made in the early part of the trading week. If you are looking to make high returns today, then start opening Call options in the crude oil binary option.
Gold managed to cap some very important gains during yesterday’s trading session. This was due to the forecast that the Fed will extend its current stimulus program. This has led big investors to say that it is the right time to go long on the yellow metal. Gold futures are trading higher this Friday by $2. The gains today are not great. They will be dependent on the strength of the U.S. dollar this afternoon. Look to go long on gold futures to make high returns.
There is high demand when speaking of American indexes these days. They have managed to gain in recently. One of the most popular is the S&P 500. Traders are of the view that it is profitable to start buying into American indexes such as the S&P 500. Look to open Call options in the S&P 500 once the U.S. session gets going.