Downturn Continues this Friday! USD The demand for the dollar is very low today. This is after it made heavy losses versus its peers yesterday. Traders are of the view that further losses are ahead for the greenback due to the positive market sentiment and confidence among forex traders. The EUR/USD pair has climbed this morning by 5 pips to $1.2939. The USD is also trading lower vs. the GBP and CAD.
The euro is one of the strongest currencies this Friday, as it made very important gains on Thursday. Traders feel that there are further gains on the horizon for the euro. This is after it has made very heavy losses as of late. The release of positive economic data from the leading economy has really played in the EUR’s favor. Follow the movement of the EUR/USD in the coming hours.
There is little demand for the Japanese yen this morning after it lost a lot of value during yesterday’s trading session. Traders decided to ditch the Japanese currency due to the lack of demand for safe-havens. They instead bought into riskier currencies and assets. The dollar has actually made inroads into the yen today. Do not be surprised if the JPY slides in the next few hours of trading.
Crude oil made impressive gains yesterday on the return of risk appetite into the financial markets. Crude has been one of biggest losers in recent trading weeks. The losses went on for a very long time, which was more than traders expected. Therefore, the price increase yesterday was very much needed, as traders have had a lack of confidence recently in the crude oil binary option. The gains came amid the release of positive data from the leading economies and due to the U.S. stock market climbing in line with forecast. The negative is that oil prices are lower this morning by 0.53 percent the $85.59 level. The reason for the weak prices is traders still foresee to crude to make further declines in the sort-term.
Gold futures managed to rise by more than $10 yesterday on a weaker dollar and due to the publication of positive economic figures on Thursday. However, this has not stopped the precious metal from diving several dollars this morning to the $1,708.45 level. Traders just do not have the confidence to buy into gold today, as there is a lack of factors helping gold. This may lead to a selloff as the trading day continues, so follow events closely.