Binary Options Daily Analysis: Crude Soars During Last Trading Day of 2012!
The USD fell yesterday and has been weaker for the past few weeks overall. In fact, the USD slumped during 2012, as the demand for haven currencies has fallen. One very important reason for the drop in the dollar is the mass stimulus that the Federal Reserve has gone ahead with in the past year. Traders are of the view that there is much more bearishness left for the USD, as investors will be willing to take more risks in the New Year. This is after President Obama and Congress came to a fresh budget agreement late Monday night.
The euro has managed to hold onto its value in recent trading weeks. This has been enabled with the publication of positive economic data from the region. In addition, a number of countries have increased the amount of money in circulation in their economies more than the Eurozone. Therefore, the natural result has been a bullish euro. Traders have taken it upon themselves to open Call options in the EUR/USD recently, as it may be that the pair will continue to advance when the forex market reopens tomorrow morning. Investors should make sure to do their research as soon as possible.
The yen has been the currency which traders have decided to ditch recently. This is as there have been so many events coming out of the Japanese economy. The most significant has been the recent election of Shinzo Abe as Japan’s new prime minister. The reason why this is so important is due to him being the biggest advocate for introducing more stimulus into the nation’s economy in the coming months.
There was some positive news for the leading European stocks. They ended 2012 with the best yearly rally since 2009. This came as the European Central Bank’s determination to purchase bonds eased the concerns that the region’s debt crisis will worsen.
The Stoxx Europe 600 Index ended the trading year at 279.68, a rise of 14%. Greece’s ASE Index gained 33%, the biggest advance among the 18 most developed European markets. Germany’s DAX climbed 29%. The U.K.’s FTSE 100 advanced 5.8%. France’s CAC 40 gained 15%. Spain’s IBEX 35 slipped 4.7%.
Royal KPN NV slumped 60%. Bankia SA fell 89%. Sky Deutschland AG surged nearly tripled in 2012.
One of the most bullish assets lately has been crude oil.
It continued to climb into the fourth week of trading on Monday.
Traders have found favor in crude, as they feel that there are a number of reasons to buy the energy.
One of the most important of these has been the falling production by OPEC. The excess demand has put much upwards pressure on oil.
In addition, with the dollar going much weaker, traders have taken the opportunity to purchase Call options in crude oil lately.
The improvement in the global economy is one of the most important factors in driving crude oil prices higher.
The price of the commodity is at $91.76. Trading is suspended today, as it is the New Year. Therefore, you will have to wait until tomorrow to see which direction the crude oil binary option will go in.
Traders have opted for the USD/JPY currency pair lately. They have preferred opening Call options since the beginning of October, as the USD/JPY pair keeps on going higher. Traders feel that there is no reason to buy into the yen, especially as the BOJ continues to go ahead with further stimulus measures to boost the nation’s economy.