Yen Slides on Monetary Stimulus Progress!
The dollar is by far the strongest currency this morning. Traders are in the mood to take some big risks, as there seems to be a lot of trading opportunities. The EUR/USD currency pair is trading lower by 0.07 percent at $1.3620. The GBP/USD has slumped 0.06 percent to $1.6395. The dollar is also higher versus a number of its other main peers.
There is a lack of demand for the Canadian dollar this Thursday morning. Traders are not in the mood to take risks when it comes to the CAD. This is after officials of the central bank stated that it is likely that there will be deflation in the near future. There has been a lot of downward pressure on the currency in recent weeks, so what we are seeing today is nothing new. Despite the weakness we are seeing now, the loonie is expected to make a bullish comeback.
The Japanese yen is trading lower on all fronts this morning after data showed that there has been a lot of progress in the nation’s monetary stimulus policy. The yen surged versus the dollar yesterday, but the gains have since been reversed. Another reason why the USD/JPY pair has jumped this morning is on the Fed being set to cut stimulus in the months ahead. The USD/JPY pair is trading higher this morning by 0.14 percent at the 104.37 yen level. The yen will be the currency to sell today.
U.S. stocks fell for the third straight trading day on weak services data. It was expected that this economic data would come out positive, but this ended up not being the case. The result was pushing stocks much lower to cap a losing streak. This is in contrast to the winning streak which we saw in previous trading weeks.
The Dow Jones dived 0.27 percent to 16,425.10. The Nasdaq Composite Index slipped 0.44 percent to 4,113.68.
Facebook gained 4.84 percent to $57.20. Ford advanced 0.45 percent to $15.58. Intel dived 1.24 percent to $25.46.
Crude oil futures are trading near their lowest level in five weeks on the forecast that supplies will surge. However, the commodity is trading higher this morning by 40 cents, as traders have decided to take advantage of the basement prices. The fact is that the black gold tumbled in the previous five days of trading, showing just how low demand has been for the commodity. In fact, crude dived nearly $7 a barrel during last week’s trading session, but will continue today’s bullish comeback.
The price of gold is about level this Tuesday morning at the $1,237.90 level. Asian demand is very high, which is why the commodity is trading near a three week high. It’s good to see that gold has made important gains in previous trading days. Traders have a lot of confidence, as they feel that the metal is very much undervalued. Therefore, it may be the case that gold will start going higher in the coming hours of trading day. With this in mind, start looking into buying the commodity as the trading day passes by.
The Dow Jones has been one of the weakest indices recently. Traders have felt that it is not worth it for them to go long on the Dow. This is due to the risks which are currently in the financial markets. For example, there is a lack of risk appetite due to the weak sales data which was released by the U.S. economy yesterday. Look for the Dow to make a bullish comeback.