Yen Slides on Record Trade Gap
There is mixed behavior when speaking of the U.S. dollar this morning. Traders are of the view that they should look to see the decision from the Fed meeting later today while trading the forex market. This will at least help them make those ever so important decisions. The dollar is trading lower versus the Aussie, pound and the euro this Wednesday morning.
The Japanese yen is trading lower this morning versus 15 out of 16 of its major currency counterparts. This is after the country posted its biggest trade deficit in history to date. The yen has made big losses versus the euro, dollar and the pound. The Japanese yen has dropped 14 percent so far this year. Traders will want to ditch the Japanese currency today if they are interested in making high returns from the forex market. The USD/JPY pair is higher as of now by 0.29 percent at 102.97 yen.
The Australian currency is a lot stronger this morning, as traders feel that it has been oversold in previous trading sessions. Also, there is a lot of positive sentiment in the currency market this morning, which has turned out to lend the loonie a helping hand. The CAD is trading higher versus the USD. Even though we are seeing a mini comeback for the Canadian dollar, analysts doubt whether these gains can be built on in the coming trading days.
There was a decline in American stocks before today’s decision by the Fed. There has been little appetite among traders when it comes to investing in the top stocks on Wall Street. This is in contrast to what we have seen in the forex market this morning.
The Dow Jones Industrial Average dipped 0.06 percent to 15,875.26. The Nasdaq Composite Index dived 0.14 percent to 4,023.68.
Facebook actually climbed 1.95 percent to the $58.76 level. Microsoft slipped 0.98 percent to $36.52. Nokia made losses of 1.34 percent to $7.36.
There is a lot of strength when speaking of the crude oil binary option this morning after U.S. crude stockpiles fell for a third straight week. The crude oil binary option has jumped this Wednesday morning by 20 U.S. cents to $97.67. With crude stockpiles in the world’s largest consumer sliding 2.5 million barrels last week, it is no wonder that traders have taken it upon themselves to go long on the commodity. It is important to note that the commodity fell in the previous week by 1.1 percent, showing the volatility in the commodity.
Gold is level this morning, but it did manage to make big gains during yesterday’s trading session. This is on the prediction that the Federal Reserve will refrain from cutting economic stimulus. Gold has already dived 27 percent so far this year, and investors fear that the commodity could go even lower in the next few days of trading. This means you will want to be cautious while trading the gold binary option both today and in the days ahead. In other words, look to open Put options this instant.
The GBP/USD currency pair is trading higher today, as investors feel that the pair will be able to make additional gains in the hours ahead. This is because there is so much demand for the currency pair at the moment. This is largely due to the British economy going from strength to strength. With more gains for the GBP/USD in mind, you may want to look to open Calls in the GBP/USD pair.