Binary Options Daily Analysis: Stocks in Asia Jump on Fed Stimulus Plan!
The greenback is mostly lower against its peers, as there is a lot of confidence amongst traders today. They are willing to take big risk when it comes to the forex market. The USD/CAD pair is lower by 0.52% at C$1.0207. The dollar has also lost a lot of strength versus a number of its other peers in the latest round of trading. Positive data is needed to push the greenback even lower this Thursday.
The euro is going through a weak patch at the moment. Its biggest declines are versus the pound and the dollar. This is as traders sell the euro for other currencies which may provide traders some very high returns today. The EUR/GBP currency cross is down 0.78% at 84.99 pence. There will need to be a lot of positive data today to give the euro a helping hand that it needs.
The USD/JPY is lower today by 0.72% at 95.31 yen. There is a lot of weakness for the yen, but it has managed to gain vs. the greenback. Traders have ditched the dollar as much as the yen due to its haven status. The reasons for the yen’s weakness is due to the stocks market rally in Japan and the forecast of very aggressive stimulus measures by the Japanese economy in the near future. The yen is set to make additional declines as the trading day drags on.
There was a bullish session for Japanese and other leading Asian stocks. This came on the announcement by the U.S. Federal Reserve to go ahead with aggressive stimulus measures to boost the U.S. economy. It is true that the U.S. economy is growing, but o fast enough. The other reason for Asian stocks gains was that Chinese manufacturing grew faster than was expected. This sent a lot of bullish sentiment into the markets.
The MSCI Asia Pacific Index added 0.2% to 134.72. Japan’s Nikkei 225 Stocks Average gained 1.3% to the highest level since September 3, 2008. This comes before the expected announcement by the new central bank head Kuroda of a shift in economic stimulus measures today. The Hong Kong Hang Seng Index dipped 0.1%. China’s Shanghai Composite Index rose 0.3%. South Korea’s Kospi Index slipped 0.4%. Australia’s S&P/ASX 200 Index also fell today.
The crude oil binary option has made very big losses this morning. It is currently lower by a whopping 52 cents at $92.98. Traders feel that the commodity’s recent gains may have been overdone. Therefore, they are very willing to ditch the commodity today.
There are also other factors playing into the weak crude prices.
The fact is that the U.S. growth rate is not as high as policymakers hoped. This is the real reason why the U.S. will go ahead with more stimulus in the near future.
However, even this will not be like to boost the U.S. economy to the required growth rate.
The crude oil binary option’s losses may be prolonged if there is further weak data this Thursday afternoon.
The GBP/USD pair is much higher today by 0.6% at $1.5188. The confidence has gradually poured into the British currency since the commencement of today’s trading session. With investors willing to take big risks today, it is no wonder that the pound is so strong. The fact is that there is a lot of confidence in the markets, which has led traders to go bullish on the pair. Expect more gains for the pair later on this Thursday afternoon.