Binary Options Daily Analysis: Asian Stocks Plummet to Record Worst Month Since 2008!
The U.S. dollar is down versus its main peers this Thursday morning. This follows a very bullish trading session on Wednesday. The dollar has recently benefited from the European debt crisis spreading and the leading economies slowing down.
The GBP/USD pair is trading higher at the moment by 25 pips at $1.5503. The AUD/USD pair has soared as of late by 33 pips to trade at $0.9738. The USD is trading lower against the CAD by 31 pips at C$1.0270.
The current losses for the dollar will only continue if there is unexpected positive news in the coming hours. What we are seeing now is somewhat of a price correction in the forex market. This provides traders with the opportunity to take advantage of market volatility.
The European single currency suffered yesterday, as we said would happen: “Considering that the European debt crisis will take a twist for the worst, then the euro will continue to decline versus its main peers during the current trading day.”
The euro plummeted to near a 2-year low vs. the dollar on Wednesday. This is due to traders seeking to put their money into safe-haven currencies. Therefore, it is understandable why the euro also continued to decline vs. the yen.
The EUR/USD pair is trading up this morning by 47 pips at $1.2414. The latest gains for the euro may only be short-term, as traders are wary of the European single currency.
The yen has risen against its main peers today, as it is benefiting from its haven status. The Spanish banking crisis and fears that the European debt crisis will spread to other countries are the main factors which are driving the yen higher. However, this is bad for Japanese exports, as it makes Japanese products less competitive.
The JPY is also strong today following a stock market slump in Asia. The USD/JPY pair is down this morning by 20 pips at 78.87 yen.
Stocks in Asia fell, as Japan’s factory output trailed forecasts and on the European debt crisis spreading to other countries.
Leading indices slipped to record their poorest monthly performance since 2008. The MSCI Asia Pacific Index slid 0.6% to 112.22. Japan’s Nikkei 225 Stock Average Index fell 1.1%. Australia’s S&P ASX 200 Index slid 0.4%. South Korea’s Kospi Index declined 0.1%. China’s Shanghai Composite Index slid 0.6%. Hong Kong’s Hang Seng Index tumbled 0.7%.
Hitachi Construction slid 2% to 1,512 yen. Esprit Holdings Ltd. retreated 1.3% to HK$12.30.
Crude oil fell significantly yesterday, just as we said would happen: “Further declines may be on the cards later today for oil.” The contract fell $2.94 yesterday to $87.82. This is the lowest closing price since October 21, 2011.
Oil is heading for its biggest monthly fall in 3 years. This comes on a slowing U.S. economy and a worsening European debt crisis. In addition, the economies of India and China have been slowing down recently.
The price of crude is down this month by 16%, the biggest monthly decline since December 2008. The ongoing downward pressure on crude prices may lead the commodity to make further losses in the coming trading days.
The EUR/USD pair experienced a very bearish trading session on Wednesday, as was predicted: “Another day of declines will occur today for the EUR/USD pair. This means that traders have an opportunity in opening Put options in the EUR/USD forex binary option.” The pair is trading higher at the moment. However, despite the recent gains, the EUR/USD may decline later on this Thursday.