Binary Options Daily Analysis: Crude Oil Slides in Recent Trading!
The greenback is one of the strongest currencies this Wednesday. The USD/CAD pair is higher today by 0.26% at 98.68 Canadian cents. The AUD/USD pair is weaker currently by 0.2% at $1.0563. The dollar has also surged versus the kiwi. Traders prefer haven currencies today, which explains why the dollar is so bullish. Investors are hoping for another rally on Wall Street. Such a result could weaken the USD later. It is forecasted that the losses of the GBP/USD may be extended over the next few hours.
The EUR/USD pair has fallen today by 0.24% to $1.3274. The EUR/GBP is stronger today by 0.21% at 83 pence. The European single currency is very bearish today following heavy gains which it made in the previous trading session. It is the view of investors that the strong euro could hurt the recovery of the Eurozone. The leading stocks in Europe are weaker today, which has put a lot of downward pressure on the EUR. May traders are waiting on the sidelines until the commencement of U.S. trading shortly.
There is a lot of confidence in the Japanese eyen today. Key officials recently stated that there will be no additional stimulus for the economic in the short term. This statement was highly unexpected, which put a lot of confidence in the yen. The reason why the JPY has been so weak lately is largely due to the forecast of additional stimulus for the Japanese economy. The yen has surged versus the dollar and euro this Wednesday.
Asian equities slumped to cap their biggest losses in 2 months. Chinese stocks slid for the first time in 3 days, while the Nikkei tumbled the most since May. All of this comes after there was a stock market rally yesterday.
The MSCI Asia Pacific Index fell 0.7%. Japan’s Nikkei 225 Stock Average tumbled 2.6%. China’s Shanghai Composite Index slumped 0.7%. Hong Kong’s Hang Seng Index made losses of 0.1%. Taiwan’s Taiex Index lost 0.8%. Australia’s S&P/ASX 200 ended up higher by 0.5%.
Honda slumped 3% to 3,280 yen. Toyota slumped 2.6% to 4,155 yen. Brother Industries slid 5.7% to 909 yen.
The losses which we saw for Asian stocks may have a dramatic impact on the U.S. market today, which means follow events closely.
Crude oil was bullish at one time earlier on. Crude has fallen 5 cents to $93.68. Traders have ditched the crude oil binary option today, as there is a lack of positive factors at work today.
This is in spite of Japan publishing a lot of positive economic data earlier on. It is important to take into account that crude prices dived notably yesterday.
The stronger dollar has deterred traders from opening long term positions in the commodity. This is largely due to there being a lot of risk with the leading commodities lately. There will be a lot of economic data from the biggest economies later on.
The U.S. CPI and industrial production will be crucial in driving the markets later on. It is possible for there to be a bullish upturn once U.S. trading gets going this Wednesday morning.
The GBP/USD pair has been weaker since the start of today’s trading session. The GBP/USD is lower as of now by 0.45% at $1.5993. There is a lack of confidence in the pound sterling due to the possibility that the U.K. may dive into recession. The U.K. has been unable to grow at a steady pace, which has really deterred many forex traders lately.