Binary Options Daily Analysis: Yen Continues to Gain Momentum Today!
The dollar is stronger today versus the majority of its peers following the U.S. stock market rally yesterday. Traders feel that the bullish stocks reflect on a strong U.S. economy. Therefore, now is the right time to buy into the USD. This is especially after there are still a lot of risks in the forex market. The GBP/USD pair is weaker today by 0.07% at $1.5826. The USD/CHF has risen 0.16% to the 0.9308 Swiss francs level.
There is a lack of demand for risky currencies today, which has directly hurt the euro. The EUR/USD pair is lower today by 0.15% at $1.3302. The EUR/GBP has declined 0.12% to 84.02 pence. Investors have ditched the euro for safer currencies, as traders await data from the top economies. There is still some instability surrounding the U.S. debt ceiling talks. As a result, you will need to be alert while trading the euro and its main counterparts as the trading day passes by.
The yen is very bullish this morning on the announcement that the Bank of Japan will only have new stimulus at the beginning of next year. The reason why this has supported the yen so much today is due to traders expecting much more aggressive steps to meet the 2% inflation target, weaken the JPY and boost the Japanese economy. The USD/JPY is trading lower today by 40 cents at 88.31 yen. The JPY is also stronger versus its other peers.
Asian equities dived today on the news that the Bank of Japan will hold off from fresh stimulus until January 2014. This pushed the JPY higher and the top Asian shares much lower.
The MSCI Asia Pacific index declined 0.6% to 133.15. Japan’s Nikkei 225 Stock Average fell 2.1%. Australia’s S&P/ASX 200 Index advanced 0.2%. South Korea’s Kospi Index declined 0.8%. Hong Kong’s Hang Seng slipped 0.3%. China’s Shanghai Composite index fell 0.6%.
Nissan dived 2.8% to 842 yen. BHP Billiton Ltd. advanced 1.3% to A$37.06.
The losses in Asia came in spite of gains made on Wall Street yesterday. Traders still are not 100% confident, as there are risks coming out of the Japanese economy. It will be interesting to see how much this will dominate market sentiment during today’s trading session.
Crude oil futures are lower this morning by 7 cents at the rate of $96.61. This comes after the commodity soared yesterday. The losses this morning may only be temporary as U.S. data supports a further rise for the crude oil binary option.
The one factor which is giving traders a lot more confidence in the leading commodities as of late is the high chance of the debt ceiling to be raised. Crude has gone from strength to strength in recent trading weeks, as traders foresee the commodity to hit the $100 mark.
In the meantime, traders will need to get in at the right price, as there may continue to be a lot of market fluctuation. Positive global data could push the crude oil binary option higher in the latter hours of trading this Wednesday.
The leading U.S. index is the Dow Jones. It has risen in the previous week of trading. The Dow also climbed on Tuesday, as traders became a lot more confident after profits of the leading U.S. companies came out better than was expected. A lot of the movement today will be dependent on the talks between President Obama and Congress in connection to raising the U.S. debt ceiling, which is crucial to bot the U.S. economy.