USD Continues Ascent and Asian Stocks Lower on Chinese Data

Binary Options News : January 6, 2014

trading bikinis for scarves editorial cartoon for the options news update of January 6, 2014
Image credits

USD Continues Ascent and Asian Stocks Lower on Chinese Data

Asian markets opened with a negative reaction to further weak data being released from China, following on from soft data releases from the world’s 2nd largest economy at the back end of last week.

Last week saw China’s non-manufacturing purchasing managers’ index drop to 54.6 in December from 56.0 in November. Overnight it was the release of the Chinese HSBC PMI data, which tracks sales, inventories ,employment, and prices of 400 private services sector companies, which disappointed markets. The Chinese HSBC PMI was down to 50.9 after previously being 52.5.

Recently: US Dollar Enjoys Safe Haven Status on Bernanke Speech and Chinese Data

The data sent Asian stocks lower and continued the US Dollar’s safe haven status except against the Japanese Yen, which found itself higher against the USD, which without clear reasoning why in the markets, was subject to safe haven status buying itself, as investors bought in dips in the charts.

Stocks

With Japan’s Nikkei 225 reopening after an extended holiday break, it ended 2.06% lower as much of the global optimism seen at the back end of last year appears to have abandoned the markets for the time being. Hong Kong’s Hang Seng Index was 0.74% lower and the Chinese Shanghai Composite index fell 1.93%, whilst the Australian S&P Asx/200 was down 0.47% on the news from China, its largest trading partner.

Currencies

The USD picked up where it left off on Friday with gains against the EUR – up 0.07%, the GBP – up 0.34% and the CHF – up 0.13%. The USD/JPY was down 0.47% and the Dollar cousins of the greenback continued to rise against the USD with the CAD up 0.08% and the AUD up 0.02%. The US Dollar index which measures the US Dollar against a basket of 6 weighted currencies was up 0.03%.

Commodities

The record low temperatures in North America continues to push the price of Natural Gas higher, up 0.58% in overnight trade, despite supply levels showing to have increased last week. Precious metals started the week still finding investor favour, with Gold rising 0.23% and Silver rising 0.16% as reports emerged of increased physical demand from China. Crude Oil rebounded from last weeks news of increased supplies in the US and increased international output, especially in Libya, to rise 0.11% to $94.07 a barrel.

Today’s Outlook

We can expect European stocks to open lower following the trend set in Asian markets of a risk off sentiment. Germany will release preliminary data on consumer price inflation, accounting for the majority of overall inflation. The UK will publish service sector activity data, a leading indicator of economic health, whilst in the US, factory orders data and the Institute of Supply Management data on service sector activity will be published.

* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

GD Star Rating
loading...

US Dollar Enjoys Safe Haven Status on Bernanke Speech and Chinese Data

Binary Options News : January 5, 2014

Euro and Dollar editorial comic from the options investors' news of january 5, 2014
Image credits

US Dollar Enjoys Safe Haven Status on Bernanke Speech and Chinese Data

The US Dollar enjoyed a boost on Friday after weak data from the Chinese service sector ignited safe haven demand for the USD, whilst a tentatively optimistic speech by outgoing Federal Reserve Chairman Ben Bernanke ensured further demand for the greenback.

China’s non-manufacturing purchasing managers’ index dropped to 54.6 last month from 56.0 in November. This followed the release earlier in the week of China’s final HSBC PMI which went down to 50.5 last month from 50.8 in the preceding month. The data from the world’s 2nd largest economy boosted the appeal of the USD amongst traders.

Recently: Precious Metals Soar As 2014 Gets Underway

The data from China helped offset a disappointing US Initial Jobless claims data which showed that the number of individuals filing for initial jobless benefits in the week ending December 28 fell by 2,000 to 339,000. This was less than expected with analysts forecasting. jobless claims to decline 7,000 to 334,000.

Meanwhile, in a speech by outgoing Federal Reserve Chairman Ben Bernanke, it was said that the US economy continues to recover and that the Federal Reserve will continue to keep monetary policy loose.

Stocks

The speech by Bernanke boosted US stocks which had fallen earlier in the day. After disappointing data from China and the US jobless figures dampened global economic optimism, US Stocks closed mixed with the Dow Jones Industrial Average Closing up 0.17%, the S&P 500 index down 0.03%, and the Nasdaq Composite index fell closing 0.27% lower. Earlier in the day, strong PMI data from UK and Europe boosted European stocks with France’s CAC 40 closing up 0.48%, Germany’s DAX 30 up 0.37% and the UK’s FTSE 100 finishing up 0.19%.

Currencies

The soft Chinese data and Bernanke comments boosted the US Dollar which was higher against most of it currency rivals. The EUR/USD closed down 0.60%, the GBP/USD closed down 0.21%, the USD/CHF was up 0.70% and the USD/JPY was up 0.04%. There were however, falls for the greenback against its dollar cousins, as a rise in commodity prices and mining shares boosted the AUD/USD – up 0.43% and the USD/CAD down 0.31%.

Commodities

In busy commodity markets, Gold hit a near 3 week high, rising 0.90% as physical demand increased and bargain hunters took up positions after recent heavy falls. Silver also rose, gaining 0.11% as investors bought on dips in price in precious metals. Crude Oil fell 1.27% to a 1 month low as investors looked beyond supply data and sold on Libya increasing its output. Natural Gas rose 0.09% as cold weather hit North America, as investors also shrugged off supply data.

* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

GD Star Rating
loading...

Precious Metals Soar As 2014 Gets Underway

Binary Options News : January 2, 2014

pope francis caricature about Colorado's high spirit from the options trader's news of January 2, 2013
Image credits

Precious Metals Soar As 2014 Gets Underway

In quiet holiday trade with most exchanges closed for the New Year holidays, the first stars of 2014 were Gold and Silver, both making strong gains in the light Asian trade.

After ending 2013 with its first annual decline in 13 years and 29% down on the year, Gold rose 1.89% overnight with Silver climbing 3.76%. The precious metals market was seen as the go-to investment in Asian markets as a flat currency markets and almost non-existent stocks market provided little in the way of movement or profit opportunity. So it was left to traders bottom feeding on gold and silver after heavys, to provide some early new year action.

Yesterday: US Data Pleases, China Data Disappoints

Stocks

Overnight,he December HSBC China Manufacturing PMI showed a reading of 50.5, unchanged from the flash reading and as per market expectations. The release helped push the Shanghai Composite index lower, ending the morning down 0.44% whilst neighboring Hang Seng index dropped 0.25%

Currencies

Talk of a shift in the Bank of England’s monetary policy saw the GBP rise 0.22% against the US Dollar with the GBP/USD hitting a 2 and a half year high. The AUD/USD fell 0.11% on the back of the Chinese PMI data as China is Australia’s biggest trading partner. The USD/CAD was up 0.13% and both the EUR/USD and the USD/JPY were down 0.01% as the US Dollar was making moderate gains in most of it currency pairings.

Commodities

The soaring prices of precious metals provided much of the talking point in overnight up 2% and Silver nearly 4%, trade. Investors buying on dips or taking long positions pushed prices higher, gold nearly over growing talk of prices having bottomed. Crude Oil rose 0.31% as investors watch the output levels of Libya and South Sudan. Natural Gas dropped 0.16% as warmer weather forecasts look like ending the cold snap in the US for now.

Today’s Outlook

Markets in Europe reopen fully today except in Switzerland which is still having a national holiday. Expect busy trading after a relatively quiet Asian session, as PMI data gets released in the UK and the Eurozone. This is followed by key jobless data in the US, which makes today a possibly strong volatile day of trading ahead.

* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

GD Star Rating
loading...