Binary Options Daily Analysis: Yen Falls on Asian Stock Market Rally!
The U.S. dollar is broadly higher today vs. its main peers, as investors prefer the haven dollar over riskier currencies. However, there are now signs showing that the dollar could end the trading day lower versus a number of its counterparts. The GBP/USD forex pair is higher by 0.06% at $1.5116. The USD/CAD is up 0.16% at 1.0233 Canadian cents. Much will be dependent on the economic data that is published from the U.S. economy this Tuesday afternoon.
The EUR is the most bearish currency this Tuesday. The euro has fallen versus the dollar and the pound on the news that there may be possible taxes on bank deposits in Cyprus. This has been very much in the news since the latter half of yesterday’s trading session. It may continue pushing the European single currently lower against its main peers as the trading day drags on.
The yen is very weak after there was a rally in Asian trading earlier this morning. The USD/JPY is higher today by 0.13% at 95.34 yen. Traders have been able to benefit from the yen’s losses. It has been lower since early morning trading. Traders need to remember that the JPY is falling as of now due to the policy of the Japanese government and the Bank of Japan to put much cash into the economy in order to weaken the yen. This will boost exports in the future.
There were gains made by the majority of Asian stocks earlier this morning. This came after reports that the Cyprus parliament will not approve a tax on bank deposits.
The MSCI Asia Pacific index gained 0.4% to 134.67. Japan’s Nikkei 225 Stock Average gained 2%. Australia’s S&P/ASX 200 Index fell 0.6%. South Korea’s Kospi Index added 0.5%. New Zealand’s NZX 50 gained 0.1%. Hong Kong’s Hang Seng Index slipped 0.2%. China’s Shanghai Composite index advanced 0.8%.
There were gains made for the majority of Asia shares. However, it is important to note that the gains were much greater earlier in the session. There are fears that the Cyprus parliament will not approve the bailout package. Therefore, traders have become nervous about their investments. This has produced much instability the markets today. Investors hope that the gains for Asian stocks will help boost U.S. stocks during the U.S. session.
The crude oil binary option was able to make some important gains yesterday. This came about as there has been much bullish data from the U.S. economy recently. Unfortunately, the commodity is weaker this Tuesday.
There are diverse reasons for this that will need to be looked into now. The first is that there has been a big rise in U.S. crude supplies and crude oil inventories. In addition, the U.S. dollar is much stronger today.
Therefore, there is much downward pressure on the crude oil binary option. Crude prices are lower right now by several cents, but it is very well possible that the commodity could be a comeback. This is due to many technical factors supporting it.
One of the most dynamic assets to trade these days is oil. This is largely due to the market movement of the commodity each trading day. Traders forecast that the commodity likely to make a comeback in the next few hours. This is a trend we have seen in the past few weeks of trading, as there are still factors backing the commodity. Many financial institutions have long bets in crude, which is currently supporting the price of crude.