Binary Options Daily Analysis: Yen Dives on Lower Demand for Havens!
The greenback is in very low demand this morning, as investors are in the mood to buy into riskier assets. The biggest losses have been versus the euro, Aussie and the pound sterling. The GBP/USD pair is higher at the moment by 0.11% at $1.5180. The USD/CHF pair is lower this Friday by 0.05% at 0.9360 Swiss francs. Traders are of the view that the U.S. dollar may slide further in the coming hours.
The euro is trading higher on all fronts today. Investors feel like purchasing Call options in the EUR/GBP and EUR/USD, as the euro is in high demand. His is after it tumbled versus a number of its main peers during February. It may be that the Eurozone has started to get its act together. ECB President Mario Draghi did point out that there is likely to be more stimulus ahead, but this has not hurt the euro.
The USD/JPY is trading lower this morning by 0.05% at 92.52 yen. Traders just felt like selling the yen today and taking risks. The losses shave come after there was a rally in Asian stocks earlier today. This has sent much optimism through the markets. Therefore, traders have capitalized on this. The yen has also lost ground versus the pound and the euro in the most recent trading. Do not be surprised if further loses are on the horizon later on.
There was a rally in Asian stocks as they erased their early losses in the latter hours of trading. This is after the appointment of the new Bank of Japan governor. The drop in consumer prices increased the speculation that there will be further stimulus ahead. The MSCI Asia Pacific Index advanced 0.1% to 135.23.
The MSCI Asia Pacific Index advanced 0.1% to 135.23. Japan’s Nikkei 225 Stock Average increased 0.5%. This is despite the index sliding by as much as 0.8 percent in early trading. Australia’s S&P/ASX 200 Index slid 0.3%. China’s Shanghai Composite Index added 0.3%.
There were weak economic figures from Indonesia, Japan and China earlier today which initially pushed Asian shares into the red. The comeback they made in late trading as very important in showing just how quickly the markets can reverse. This may have important implications for European and U.S. stocks once trading gets underway.
The crude oil binary option has slumped in the past 2 weeks of trading. Investors have ditched the energy, as there are a number of factors pushing it lower. It has recently been revealed that OPEC increased production for the first time in 6 months. In addition, crude oil inventories surged last week by 4.1 million barrels.
This is largely due to traders realizing just how overvalued the commodity has been. In some ways, the weakness for the commodity today is welcome.
Traders were worried that prices could overheat, which is why they have dumped crude oil in the most recent trading.
The bearish dollar this morning has failed to back oil prices. Another reason why oil is weaker today is due to the weak Asian data this Friday and the stock market slump on Wall Street yesterday afternoon.
There is a lot of bullish sentiment in the forex market today. Traders have decided to take a lot for risks. This is after the dollar surged last month, while the euro dipped. The EUR/USD forex pair is trading much higher this Friday morning by 0.18% at $1.3080. There may be more gains ahead for the EUR/USD pair this Friday.