Binary Options Daily Analysis: Asian Stocks Continue Advancing on Global Economic Outlook!
The greenback is mixed today after there was the publication of much positive economic data from the top economies recently. The AUD/USD pair is lower by 0.37% at $1.0318. This is despite the pair being much higher several hours ago. The USD/CHF has slumped 0.12% to 0.9214 Swiss francs. There has been a lot of volatility today, which traders will need to be aware of if they intend on opening positions in the USD/CHF pair.
The euro has been one the most bullish currency today. It should be taken into account that investors are willing to take a lot of risks today. The EUR/USD is higher by 0.06% at $1.3398. The EUR/GBP has gained 0.81% to 87.50 pence. There is much demand today for the European single currency, as markets in Europe and across the globe are higher. This has resulted in global investors opening Call options in the EUR/USD and EUR/JPY in the most recent trading.
There was a lot of strength for the Japanese yen earlier today. However, it has lost a lot of value ever since the conclusion of Asian trading. Investors are of the view that the JPY is overvalued. This is even though the Bank of Japan has refrained from purchasing foreign bonds. Traders really do need to stay ahead of economic events if they want to have the chance to make the returns which they desire today.
Equities in Asia are trading higher for the third straight trading day on increased signs that there is a recovery in the global economy. In addition, the willingness of a number of central banks to push ahead with economic stimulus has added to the outlook boost.
The MSCI Asia Pacific Index advanced 1.1% to 135.49. Japan’s Nikkei 225 Stock Average rose 0.8%. South Korea’s Kospi Index jumped 2%. Australia’s S&P/ASX 200 Index gained 0.3%. New Zealand’s NZX 50 Index dropped 0.7%. China’s Shanghai Composite Index added 0.6%. Hong Kong’s Hang Seng Index gained 0.7%. Taiwan’s Straits Times Index climbed 0.9%. Singapore’s Straits Times Index surged 0.3%.
BHP Billiton added 0.9% to A$38.65. Petro China Co. advanced 2.9% to HK$10.74. Nippon Paper Group Inc. gained 8.3% to 1,461 yen.
The very bullish Asian stocks earlier on may help European and U.S. equities gain once momentum kicks in later this Wednesday.
There were some important gains capped by crude oil yesterday. Investors gained the confidence to buy into the commodity, as it has been sold off in previous trading days. Traders were worried about the growing U.S. supply and the projected rise in inventories.
To counter this, there has been an increase in Saudi oil shipments.
In addition, the U.S. and Asian stock market rallies have helped push traders into crude oil.
Therefore, the gains we are seeing at the moment are understandable. The commodity has climbed this Wednesday by 34 cents to $97.44.
Traders have had a boost in confidence following optimistic economic data from Australia, South Korea and Japan in the earlier hours of today. The improvement in the global economic outlook has also been crucial in giving traders increased confidence lately. Crude prices may rise further today.
The GBP/USD forex pair is weaker today by 0.81% at $1.5296. Traders have decided to sell the currency pair since the commencement of this morning’s trading session. This is largely due to the view of leading investors that the pound is in trouble. This is largely due to the weakness for the British economy and risk taking this Wednesday morning.