Binary Options Daily Analysis: Asian Stocks Jump on Global Stimulus Bets!
The dollar was much weaker earlier this morning, as traders lost confidence in the dollar. The high risk appetite led traders to dump the greenback and buy into riskier currencies. What is quite remarkable is that the dollar has made a bullish comeback versus its most traded peers in the past hour of trading. This was expected by financial analysts. The GBP/USD pair is lower today by 0.21% at $1.5094.
The euro is stronger on most fronts today. What is a big blow is that its advances versus the dollar are erased. This is as traders have decided to reevaluate their portfolios. It is true that there has been much positive data from the Eurozone in the latest trading. This is why the euro is higher against most of its peers this morning. U.S. data will be crucial today when it comes to the EUR/USD and EUR/GBP forex binary options.
One of the most bearish currencies this Wednesday is the Japanese yen. A factor that has contributed to its latest declines is the important stock market rally we saw during the Asian trading session. The higher demand for riskier assets has led to less confidence in haven assets. The USD/JPY pair is trading higher as of now by 0.16% at 93.44 yen. The yen is set to be very volatile this Wednesday afternoon. Therefore, you should see what’s in it for you.
Traders have decided to buy into Asian stocks for another consecutive trading day on global stimulus bets. This comes after U.S. stocks advanced to a record high.
The MSCI Asia Pacific Index added 1.2% to 135.94. Japan’s Nikkei 225 Stock Average added 2.1%. Australia’s S&P/ASX 200 Index gained 0.8%. Hong Kong’s Hang Seng Index added 1%. China’s Shanghai Composite Index advanced 0.9%. Taiwan’s Taiex Index surged 0.2%. Singapore’s Straits Times Index gained 1.1%
James Hardie Industries SE surged 3.6% to A$10.31, a record high. Sharp advanced 14% to 341 yen.
There were also impressive gains for a number of other leading Asian shares earlier today.
If we look at how the global markets have been moving, the pattern we have seen is a rally. There are numerous reasons for this. The prediction that the leading central banks will boost economic stimulus has given traders a lot of confidence this Wednesday.
The crude oil binary option was much higher before. However, it has since dived due to the resurgence in the U.S. dollar. Traders favored crude earlier this morning due to the greenback being a lot of positive sentiment in the financial markets.
There is still much positive sentiment in the markets today, but the greenback has rebounded to the amazement of traders. This has really hurt crude prices.
There is uncertainty over the death of Hugo Chavez, as Venezuela is a large crude producer.
There are many factors which hare affecting oil prices. It was thought that the latest U.S. stock market rally and the release of much positive data from the world’s largest economy would give crude a big boost. It did initially, but oil is just not strong enough. There may be a comeback for oil today.
The EUR/USD currency pair has slipped today by 0.11% to $1.3036. The currency pair was much stronger a few hours ago, but traders have since ditching the pair. It may be the case that investors have lost confidence in the pair, as the U.S. economy is in a much better situation than the Eurozone economy. This may lead to further declines.