Binary Options Daily Analysis: Majority of Asian Stocks Dip on Fed Comments!
The greenback is much higher today versus its main peers, as traders are not willing to take risks. This is with there being a lack of risk appetite in the markets. It should be noted that here has been some positive economic data from the leading economies. However, this was not enough to hurt the dollar. The AUD/USD forex binary option has fallen today by 0.49% to $1.0414. The GBP/USD slumped 0.47% to $1.6032. The dollar has also made important inroads into a number of its other peers in the most recent trading. Further gains may be ahead.
The European single currency was much weaker earlier on. However, it has started to gain ground. The EUR/USD forex binary option is weaker today by 0.27% at $1.3014. It should be taken into account that the USD is the strongest currency today. The EUR/GBP cross has risen today by an impressive 0.2% to 81.18 pence. Do not be surprised if the euro climbs versus the dollar later today. Therefore, you should make sure and see what is in it for you as the trading day gets under way.
The yen is one of the most bearish currencies today. The weakness for the Japanese currency is largely due to the gains in Asian stocks in the morning. The USD/JPY pair is much higher today by $1 at $88.24. The yen has also lost a lot of strength versus the euro in the past few hours. The yen may continue falling, as the trading day drags on. That is why you need to get ready and open your trades.
The majority of Asian stocks dipped, excluding Japanese, on Fed policy makers being likely to put an end to the $85 billion a month stimulus program. Therefore, this could drive the U.S. economy into recession later this year.
The MSCI Asia Pacific Index slipped 0.6% to 475.68. Japan’s Nikkei 225 Stock Average climbed 2.8%. Australia’s S&P/ASX 200 Index fell 0.4%. China’s Shanghai Composite Index advanced 0.4%. South Korea’s Kospi Index added 0.4%. Hong Kong’s Hang Seng Index slipped 0.4%.
Sharp Corp. slid 2.6% to 295 yen. Rio Tinto Group fell 1%.
Traders foresee there to be bullishness during the European session today, as the German jobless rate falls. Therefore, The DAX could gain notably later on this Friday.
Crude oil futures dipped 20 cents yesterday on the much stronger dollar and the Wall Street slump. Investors decided to sell the leading assets during yesterday’s trading, and the biggest losers were risky ones such as crude oil.
There has been a lot driving the markets lately. It was only 3 days ago when crude was much stronger, and despite the recent losses, crude is still headed for its 5th weekly gain. Crude oil is trading lower this Friday by $1.01 at $91.91.
A lot depends on what happens on Wall Street later on. For example, if there is a rally, then crude’s losses may be reversed.
On the other hand, another stock market slump could push crude prices even lower. Therefore, you will need to stay ahead of events very closely during today’s trading session.
The USD/JPY has gone from strength to strength today. The losses for the yen come on the latest stock market rally in Asia. The Nikkei 225 Stock Average was the biggest gainer during the Asian trading session. With Japan’s government and central bank finally taking aggressive stimulus measures,. Traders have decided to sell the yen and buy into the dollar in the past week.