Binary Options Daily Analysis: Most Asian Stocks Slump this Friday!
There dollar is very bullish today. Traders have decided to buy into the dollar following the publication of data from China that showed inflation rose more than was forecasted. This led to a lot of bearishness in the past few hours. The GBP/USD pair is trading lower at the moment by 0.35% at $1.6112. The USD/CHF pair is up 0.33% at 0.9171 Swiss francs. The dollar may continue being bullish in the next few hours of trading, unless U.S. stocks rally for a third straight trading day.
The EUR/GBP currency cross is higher today by 0.29% at 82.32 pence. The EUR/USD pair has lost 0.09% to $1.3261. Traders have sold off the pound and bought into the euro, as the GBP is one of the weakest currencies. This is after a report which showed a weak output report from the U.K. The euro is moderately stronger today. It is just that the dollar is even stronger. Therefore, traders will need to look at the bigger picture today if they intend in opening positions in the EUR/GBP cross this Friday afternoon.
The USD/JPY pair is up 0.1% at the 88.88 yen level. The yen has slumped against virtually all of its major peers this Friday. In fact, the yen is the weakest currency following a Cabinet vote in Japan in which they approved further stimulus for the nation’s economy. This sent Japanese stocks much higher, while the JPY went much lower. It is likely that the yen will continue to dive later today.
The majority of Asian stocks dived today, but Japan’s stocks did better. This came about due to Chinese inflation surging. Japanese stocks skyrocketed after the nation’s Cabinet approved additional economic stimulus. However, this was very much expected.
The MSCI Asia Pacific Index slid 0.3% to 476.16. China’s Shanghai Composite Index dipped 1.8%. Hong Kong’s Hang Seng Index made losses of 0.4%. Australia’s S&P/ASX 200 dived 0.3%. South Korea’s Kospi Index tumbled 0.5%. Japan’s Nikkei 225 Stock Average surged 1.4%, recording its 9th straight week of advances, the longest losing streak since December 1988.
Sydney Airport dived 5.5% to A$3.08. Sharp soared 13% to 330 yen. Sony climbed 1.6% to 983 yen. Canon jumped 2.3% to 3,370 yen. Other leading shares also gained.
Crude oil futures dipped 30 cents to $93.52. The commodity was trading higher earlier this morning. However, it has dipped ever since.
The energy is still headed for yet another week of gains. When looking at the current trading week overall, crude oil has performed pretty well. Crude oil futures have fallen today by 34 cents to $93.50.
Traders have a lack of confidence in the commodity as of now due to its being slightly overvalued recently.
This does not mean that crude prices will continue sling. However, investor will need to be cautious while trading this commodity during today’s trading session. One of the main factors contributing to the weaker prices is the very strong dollar.
In addition, the surging inflation of China played a role. This sent shock waves through the markets, as the figures were quite a surprise.
The USD/JPY forex binary option is trading higher today by 15 cents at 88.94 yen. There is a lot of weakness when speaking of the yen today is due to the very strong stocks in Asia. There was a surge earlier on in Japanese stocks, which hurt the yen. This was because traders took their money out of the yen and put it into the leading equities.