Binary Options Daily Analysis: Dollar Slides on All Fronts Today!
The greenback is trading lower on all fronts this Wednesday. This is after it was mixed earlier during Asian trading. The GBP/USD currency pair is higher today by 0.12% at $1.5144. The AUD/USD pair has slumped 0.36% to $1.0192. It should be taken into account that the forex market is very unstable this Wednesday. That is why investors need to be cautious while they trade the leading currency pairs in order to minimize potential losses.
There is also a lot of demand for the European single currency as of now. The EUR/GBP cross has gained 0.26% to 86.60 pence. The euro has also made important inroads into the U.S. dollar and the Australian dollar in the latest round of trading. It is true that there are concerns over the European debt crisis. However, traders are trading for the moment, which helps us understand the unexpected bullishness for the EUR during Wednesday’s trading session.
The Japanese yen is much stronger today following the gains made by Asian stocks earlier. There is not a lot of panic buying in the markets. Despite this, traders feel that the yen is undervalued. That is largely why the JPY is so strong today. The USD/JPY is lower today by 0.34% at 91.67 yen. The Japanese currency has also advanced vs. the pound sterling. Much of the same behavior for the yen is expected in the next few hours.
Stocks outside of Japan made very important advances during the Asian trading session. This occurred due to U.S. housing and consumer confidence data coming out better than forecasted. However, Japanese shares experienced heavy declines ahead of an Italian debt auction.
The MSCI Asia Pacific index advanced 0.6 percent to 475.72. Japan’s Nikkei 225 Stock Average fell 1.3%. Australia’s S&P/ASX 200 Index rose 0.7%. New Zealand’s NZX 50 gained 0.9%. South Korea’s Kospi Index added 0.2%. Hong Kong’s Hang Seng Index gained 0.3%. China’s Shanghai Composite Index climbed 0.9%. Taiwan’s Taiex index jumped 0.2%. Singapore’s Straits Times Index surged 0.3%.
The strong yen hurt exports, helping explain why the top Japanese companies have suffered lately. Toyota Motor Corp. fell 2.3% to 4,605 yen.
However, other leading Asian stocks experienced some nice gains.
The Asian stock market rally we saw earlier will have some important implications for U.S. stocks during today’s trading session.
There have been some impressive gains for crude oil today. This comes prior to U.S. supply data. The commodity is trading higher today by 23 cents at $92.86.
Investors have been attracted to the commodity on the weaker dollar. In addition, the crude oil binary option has been a touch undervalued recently. Investors are of the view that crude oil is cheap enough to buy into today.
There are also various other factors that are playing into the bullish oil prices today.
The commodity is trading higher partially due to the positive economic data from the U.S. economy during Tuesday’s trading session. Investors just feel that it is the time to go bullish, as there is much positive market sentiment this Wednesday.
Investors are hoping for lower U.S. supplies to boost crude oil futures even further this Wednesday afternoon.
One of the most interesting pairs to trade these days is the EUR/USD. It is higher at the moment by 0.32% at $1.3102. The pair did hit a 7-week high yesterday on concerns over the Italian election results and the Eurozone debt crisis. However, it seems to be on the backburner now, as investors have a lot more confidence today.