Binary Options Daily Analysis: Crude Oil Dives this Morning!
There is a lot of demand for the dollar this morning. The U.S. currency has gradually gained ground versus its peers as morning trading has dragged on. This is after U.S. and Asian stocks tumbled yesterday and this morning. This has started to lead to much bearish sentiment being present in the forex market. This means that traders are somewhat cautious when trading the riskier currencies, leading them to buy into the dollar. The GBP/USD pair has slumped this morning by 0.15% to $1.6092. The AUD/USD has lost 0.25% to $1.0477.
Even though there is a certain amount of bearish sentiment in the financial markets, this has not deterred traders from opening positions in the euro today. The EUR/USD pair is up 0.2% at the rate of $1.3118. The EUR/GBP has risen an impressive 0.17% to 81.53 pence. The demand for the euro is higher today in spite of their being much negative data from the Far East. The gains may be partially owed to the EUR being sold off on Friday. Therefore, what we are seeing as of now is a bullish comeback.
The JPY has been one of the strongest currencies in the past 2 trading days. Investors feel that the JPY has been undervalued, which has given them the confidence to buy into the yen in the latest round of trading. The most notable gains have been versus the pound and dollar. The USD/JPY pair has slumped this Tuesday morning by 0.47% to 87.38 yen.
Equities across Asia slumped for a second straight trading session after Japanese exports fell. The strong yen has really weakened Japanese exports. The bearish Asian stocks were compounded with poor earnings data from the Japanese economy.
The MSCI Asia pacific index declined 0.8% to 130.52. Japan’s Nikkei 225 Stock Average slid 1.2%, the second straight day of declines. Taiwan’s Taiex Index lost 0.75. Australia’s S&P/ASX 200 Index made losses of 0.7%. Hong Kong’s Hang Seng Index slipped 0.5%. China’s Shanghai Composite index fell 0.15.
Samsung made losses of 1.3% to 1,501,000 won. Mazda tumbled 6.1% to 169 yen. Toyota Motor Corp. fell 2.9% to 4,065 yen. Nintendo Co. slid 3.2% to 8.690 yen.
There will be a lot of downward pressure on European stocks, as the trading day unfolds.
There has been a lot of bullishness when speaking of the crude oil binary option lately. Investors have had much more confidence in the energy due to the resurgence in risk appetite.
However, prices are lower this morning by 12 cents at $93.08. Traders have decided to sell the energy this morning, as the U.S. budget debate lies ahead.
Even though the general sentiment of the markets has moderated, there are still many challenges ahead for the world’s most industrialized economies.
The stock market slump in Asia has been a key factor in driving oil prices lower this morning. In addition, the fall in Japanese exports is critical, as Japan is the world’s largest economy.
Therefore, traders are starting to fear that the latest economic data could have an impact on demand. This will be on traders’ minds while trading crude today.
Traders have decided to sell the USD/JPY pair in the past 2 days of trading. This was despite there being much bullishness in recent trading weeks. Investors previously sold the yen and bought into the dollar, as the Bank of Japan decided to go ahead with very aggressive stimulus measures. However, this has all gone on the backburner as of now due to traders purchasing the USD/JPY.