Binary Options Daily Analysis: Euro Slides versus Dollar and Pound!
The dollar is one of the most bullish currencies this Monday. The reason why traders have decided to buy into the greenback is due to there being much pessimism in the forex market today. The GBP/USD forex binary option is trading lower this morning by 11 cents at $1.6059. The USD/CHF pair has risen by an impressive 22 cents to 0.9269 Swiss francs. The dollar has also made impressive gains versus a number of its other peers today. The GBP/USD pair may continue to go much higher in the next few hours.
The euro has lost a lot of value versus its main peers this morning. Traders just do not have the confidence to put their money into the euro today, as there are so many negative factors in the markets right now. The EUR/USD forex binary option has lost 0.21% to $1.3041. The EUR/GBP cross has made losses of 0.13% to 81.22 pence. Traders have dropped the European single currency, as there is the feeling that the European currency is very much undervalued. Therefore, there could be further losses for the euro today.
The yen is one of the strongest currencies today. This is after it made very big losses in previous trading days. The biggest gains have been versus the euro and the dollar. This is as the demand for riskier currencies is much lower, whereas the demand for haven currencies is much higher. The USD/JPY pair has fallen today by 28 pips to 87.87 yen.
Asian equities dived after capping a 7-week rally. One of the main reasons for the fall in the top stocks across Asia earlier this morning was due to them possibly being overheated. The fact is that there is a lot of instability in the financial markets today.
The MSCI Asia Pacific Index slid 0.2% to 131.57. Japan’s Nikkei 225 Stock Average fell 0.8%. Australia’s S&P/ASX 200 made losses of 0.1%. This is following the gains which it made on January 4. China’s Shanghai Composite Index gained 0.4%.
Scotbank Corp. fell 1.9% to 3,065 yen. LG Display Co. slipped 2.6% to 30,050 won.
The bearishness in Asian stocks may hurt equities on Wall Street later on this Monday.
Crude oil made very impressive gains last week. Traders had a lot of confidence when it came to this commodity, as there were diverse factors backing the energy.
There was the publication of a lot of positive economic data from the leading economies.
This gave traders a push too poen Call options in crude oil, allowing it to record another week of gains.
One of the most important reasons why crude prices surged in the previous trading week was due to the fall in crude oil inventories. The top analysts forecasted the inventories to rise, but this did not turned out to be the case.
The price of crude is lower this morning by 34 cents at $92.76. Traders have decided to sell the commodity today, as they feel that its latest gains may have been overdone.
The EUR/USD pair is trading lower today by 0.21% at $1.3041. Traders feel that now is the right time to ditch the pair, as it has been much stronger in recent trading weeks. The USD is very strong today due to the lack of risk appetite in the forex market. The fall in Asian stocks this morning has led traders to sell the euro and buy into the dollar.