Binary Options Daily Analysis: Majority of Asian Equities Slide on Cyprus Woes!
The dollar was a lot higher earlier on. However, the U.S. currency has slumped since this morning. The reason why investors have felt like selling the U.S. currency is due to there being many more trading opportunities this Wednesday. In addition, it seemed like the greenback’s gains yesterday may have been overdone. Therefore, the bearishness we are seeing at the moment is only natural. The GBP/USD pair is higher this Wednesday morning by 0.26% at $1.5136.
There is a lot of confidence in the European single currency today. Traders have taken it upon themselves to open Call options in the euro. The EUR/USD forex pair is up today by 0.31% at $1.2922. The EUR/GBP cross has surged 0.03% to 85.36 pence. Trades are of the view that there is much bullishness still left for the euro, as the currency has been oversold recently.
There is a lot of weakness for the Japanese yen today. There is the feeling amongst investors that there could be big losses in the weeks and months again for the yen. This may be why it is so weak this morning. It is vital to remember that Asian markets are closed today. This has led to much unexpected behavior for the Japanese currency. The USD/JPY pair is higher this Wednesday by 0.24% at 95.40 yen. The yen has also lost much ground vs. the pound sterling this morning.
The majority of Asian stocks dipped earlier this morning as there were a lot of fears over Cyprus rejecting to go ahead with a levy on bank deposits. This will lead to a bigger struggle of Europe with regards to its debt crisis. However, the slump was limited due to Chinese shares gaining on expanding manufacturing this month.
The MSCI Asia pacific Index excluding the Japan Index slipped 0.1% to 467.64. South Korea’s Kospi Index dipped 15. Taiwan’s Taiex Index slipped 0.5%. Australia’s S&P/ASX 200 Index fell 0.4%. Japan’s markets are closed today due to there being a holiday. Hong Kong’s Hang Seng Index climbed 1%. China’s Shanghai Composite Index advanced 2.7%.
Seoul. LG Display Co. tumbled 3.95 to 31,200 won. BHP Billiton Ltd. sank 2.7% to A$33.62. Rio Tinto Group fell 0.2% to A$57.48.
U.S. stocks could gain later in spite of the instability during the Asian session.
Crude oil continues to be one of the most dynamic commodities. The commodity has been advancing ever since the commencement of today’s trading session. The black gold is higher today by 70 cents at $93.22. Traders have become a lot more confident in the commodity, as there seems to be a lot of reasons to go bullish today.
There is the return of risk appetite after crude oil futures slipped by an astonishing $1.50 on Tuesday. With fears over the Cyprus crisis beginning to go away, this has lent traders a helping hand to take some big risks today.
The fact of the matter is that crude prices were somewhat oversold yesterday. Therefore, the gains we are seeing today are more than welcome.
The EUR/USD pair has gradually gone higher since the beginning of this morning’s trading session. This is great news if you are someone feel that the euro has been overdone in recent trading days. Now that there is the return of risks appetite into the financial markets, traders are willing to take big risks. This could really give the EUR/USD a much needed boost. This is why traders foresee further gains for the pair today.