Binary Options Daily Analysis: Crude Oil Slides from Yesterday’s Highs!
The dollar is trading higher versus the majority of its peers today. Traders feel that the greenback is the currency to put their money, as there is a lot of instability in the forex market. The GBP/USD pair is higher today by 0.06% at $1.5669. The AUD/USD pair is weaker today by 0.735 at $1.0313. The greenback is favored among most traders, as there is a lack of bullish sentiment in the forex market today.
The European single currency is trading lower on all fronts today. The EURUSD pair is lower by 0.35% at $1.3536. The EUR/GBP forex binary option has slumped 0.39% to 86.40 pence. Traders have sold off the euro today, as there has not been enough positive data from the largest economies. In addition, traders fear what will happen with regards to the European debt crisis. There is still no big plan to curb the crisis in the long-term.
The yen has dived into the abyss on the news of the Bank of Japan’s governor resigning. Traders took this as a strong sign that there will be much more aggressive stimulus measures in the near future to put an end to deflation. The main way of doing this is printing more money. Such action would lead to a very bearish yen. That is why the JPY is in very little demand this Wednesday morning.
Asian stocks capped some very impressive gains earlier this morning. The Japanese Nikkei 225 Stock Average was a big gainer.
This was largely due to Toyota raising its forecast on the weakening yen. The gains for the Nikkei and other leading indexes in Asia were owed to the announcement that Bank of Japan Governor Shirakawa is stepping down early. This has led to the speculation that his successor will be an aggressive fighter of inflation.
The MSCI Asia Pacific Index gained 1.1% to 133.08. Hong Kong’s Hang Seng Index advanced 0.5%. China’s Shanghai Composite Index rose 0.1%. Taiwan’s Taiex Index gained 0.3%. Australia’s S&P/ASX 200 Index surged 0.8%.
This was despite retail sales for the nation sliding for the third straight month.
The gains which we saw for Asian stocks may lend a helping hand for Wall Street later today. Therefore, be prepared to open your trades once you feel that the time is right.
The crude oil binary option is weaker today by 61 cents at $96.03. Traders have decided to ditch the commodity today, as there has been a lack of good returns. In addition, there has been much conflicting economic data published in recent hours from the leading economies. As a result, this has resulted in traders ditching crude oil.
A factor which has been paramount in diving oil prices lower today has been the forecast of rising inventories.
The rise in the supply of crude and natural gas has naturally put much downward pressure on oil this Wednesday.
The latest bearishness is nothing to worry about, as crude oil is to some extent overvalued.
Therefore, traders have decided to take out some profits today. The bigger picture shows that oil prices may continue declining later.
The USD/JPY pair continues to build on its strength after Bank of Japan Governor Shirakawa resigned early in his post. This sent shockwaves through the markets and the yen much lower. This is because it is expected that his successor will be obsessed with ending deflation by printing more money. The USD/JPY is stronger today by 0.08% at 93.70 yen. Further losses may be on the horizon.