Binary Options Daily Analysis: Asian Stocks Record Notable Advances on Stimulus Forecast!
The dollar is much higher versus the euro, pound, Aussie and yen this morning. Traders feel that it was the right time to buy into the greenback, as it has been undervalued recently. The very weak European economic data has encouraged trades to buy into the greenback today. The GBP/USD pair is lower by 0.21% at $1.5508. The AUD/USD pair has slumped 0.34% to $1.0335. Traders feel that the U.S. dollar’s gains may be extended.
The euro is much weaker today after poor Spanish, Italian and Dutch data was published from the news wires. Traders did not expect this. Since the news releases, investors have sold the euro on all fronts this Thursday morning. The EUR/USD pair is lower today by 0.92% at $1.3329. The EUR/GBP cross has plummeted 0.69% to 85.96 pence. The weakness of the euro has not put downward pressure on European stocks yet. However, there are many hours ahead during the current trading day.
There is very low demand for the Japanese yen in response to the gains in Asian stocks earlier this morning. The bearishness of the Japanese currency is mainly owed to the BOJ upholding the stimulus plan. In addition, it is expected that even more aggressive stimulus measures may lay ahead for the Japanese economy. Therefore, traders have taken this as a sign that the Bank of Japan will take new measures in the months ahead.
Asian stocks rallied on stimulus bets. This is after the Bank of Japan decided to continue with its current asset-purchasing program. This is also before the central bank governor steps down next month. In addition, a contraction in Japan’s GDP boosted the likelihood that more stimulus will be on the cards.
The MSCI Asia Pacific Index advanced 0.3% to 133.64. Japan’s Nikkei 225 Stock Average gained 0.5%. Hong Kong’s Hang Seng Index added 0.9%. Australia’s S&P/ASX 200 climbed 0.7%. South Korea’s Kospi Index added 0.2%. Singapore’s Straits Times index retreated 0.1%.
Alumina jumped 7.5% to A$1.29. Alacer Gold Corp. fell 4.2% to A$3.84.
European stocks are higher this morning, as traders feel that it may turn out to pay off by opening Call options in the leading shares. This is after U.S. stocks surged yesterday on positive economic data and after President Barack Obama’s State of the Union address.
The crude oil binary option was hit yesterday. The commodity is trading lower right now by 4 cents. This is despite it advancing a lot a few hours ago.
This is largely due to the grim Eurozone outlook for growth. This makes it reasonable to sell crude, as the trend is acting against the commodity. We need to remember that demand for the commodity is still high.
This may be the reason why the latest losses are not greater. As global stocks soar, traders have taken their money out of crude oil. This explains the latest prices we are seeing.
There will be a lot affecting prices in the coming hours of trading. He most important of these will be the G20 meeting ad U.S. unemployment claims at 13:30 GMT. So be sure to stay tuned this Thursday afternoon.
The crude oil binary option was one of the strongest commodities in recent trading weeks. However, it is starting to show weakness, as traders fear the bleak outlook for the Eurozone. In addition, the outlook for the U.K. isn’t much better either. That is why traders need to stay alert while trading crude oil in the upcoming trading days.