Monthly Archives: January 2012

JPY takes a beating following Japanese Trade Deficit Announcement

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“Yen Suffers as Japan Announces Trade Deficit”

The JPY took a sumo-sized beating in this binary options editorial cartoon from OptionsClick news update

Yen smackdown by sumo-sized Japanese deficit

The Japanese Yen suffered in Asian trading this morning as Japan announced its first annual trade deficit in over 30 years. The Yen was down against most major currencies as the finance ministry declared a 2.49 trillion yen deficit for 2011. Imports increased by 12% whilst exports declined 2.7% from 2010 as the earthquake and tsunami of March hit Japanese exports hard and forced increased imports of energy supplies to counterbalance the Fukushima atomic power plant being taken offline. Up from 2010 figures; Crude Oil imports increased by 21.3%, natural gas imports increased by 37.5% whilst petrochemical imports rose 39.5%

On the back of the worse than expected news coming from Japan; the Euro strengthened against the Yen, with the EUR/JPY up 0.236%, trading at 101.49 and the greenback also strengthened against the Yen, up 0.358% trading at 77.95.

The future for the Yen does not look healthy either, with the BoJ cutting its 2012 fiscal growth forecast down from 2.2% growth to 2.0% and predictions being made for a trade deficit until 2014 at least.

The debt crisis in the Eurozone continued to worsen with Greece and its creditors failing to agree on debt restructuring terms and the EUR/USD was down 0.031% trading at 1.3032 as the dollar firmed in volatile markets. The Cable (GBP/USD) was also down, falling 0.122%, trading at 1.5607.

In commodity news, there was heavy trading in crude oil as a strengthened USD helped keep a check on oil prices after earlier hitting a high of $100.19. Further saber rattling in Iran helped push the price of Crude oil up 0.15%, trading at $99.09 a barrel.

 

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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.

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German Bond Auction and Greek Talks Improve EUR

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“Greece Talks & German Bond Auction Boosts EUR”

germany is doing the heavy lifting to support the EUR and the greek debt restructuring plan

How much would you lift to save Greece and the Euro?

In another relatively quiet Asian trading session, the EUR found some support after it was revealed that Greece was nearer to finalizing restructuring its debt with its creditors in order to prevent defaulting on a  14.4bn euro bond redemption due on the 20th March.  Talks had previously stalled last week and investors adopted a wait-and-see attitude towards the troubled common currency of the Eurozone, but with talks progressing and a default looks to be avoided, Greece should be able to secure a next tranche of bail out funds.

Also boosting investor confidence in the EUR was the news yesterday that Germany, the powerhouse of the Eurozone, experienced a better-than-expected auction of its government bonds. Germany sold 2.54bn euros worth of 1 year bonds with healthy investor demand and low yields, pleasing the markets.

The positive news in Europe ahead of the 2 day meeting between of the 17 finance ministers of the eurozone, encouraged profit taking in the gains made in the USD and at time of writing, the EUR/USD was up 0.069%, trading at 1.3022. There was also profit taking in the Japanese Yen with the EUR/JPY up 0.067%, trading at 100.30.

Crude Oil increased 0.25% in Asian trading, reaching $99.83 a barrel as the EU announced a phased embargo on oil imported from Iran. Taking effect in July 1st, threats of closing the Straits of Hormuz were ramped up, which in turn pushed the price of Crude Oil up.  As Asia is the largest importer of Oil, the impact of the sanctions may have more of an effect when European markets open later today and investors should be looking out for a rising oil price today in markets which appear to be dominated by wait and see policies and short term profit taking.

 

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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.

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Quiet trading in Asia sees EUR lower

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“Euro Down In Quiet Asian Trading”

binary options caricature of the euro recovery speed in early 2012

Is your economy recovering faster than a snail?

Following on from Friday’s profit taking and movement from risky positions into safe havens, the Asian markets opened the trading week with lackluster movement and low trading volume.

The biggest loser so far has been the much troubled Euro, down against all major currencies. Talks are still ongoing in Greece between the Greek government and its creditors, aimed at restructuring its debt and to prevent a default on its next loan repayment due on March 20th. This week also sees a two day meeting between the 17 finance ministers from the Eurozone and investors appear to have adopted a wait and see attitude towards the Euro. The EUR/USD was down 0.255% trading at $1.2898, whilst the EUR/CHF was down 0.41%, trading at 1.2081. Against the other safe haven currency; the Japanese Yen, the EUR/JPY was down 0.268%, trading at 99.34′

The support for safe havens was not limited to just the go-to safe haven currencies, Gold and Silver continued where they left off on Friday, with gains made in both precious metals. Gold was up 0.48%, trading at $1672.05, trading perilously close to the Resistance 2 point of $1679. Silver, which enjoyed over a 5% rise on Friday alone, was up 2.01%, trading at $32.313.

Crude Oil fell in Asian trading despite the EU poised to implement a phased ban on crude oil imports from Iran. With EU diplomats already agreeing on Thursday to impose sanctions on the central bank of Iran, tensions and ultimately oil prices may increase as the situation worsens. Currently a US aircraft carrier, a British Royal Navy frigate and a French warship have passed through the Straits of Hormuz without incident.  Crude Oil was down 0.39%, trading at $97.95 a barrel.

 

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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.

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MARKET CLICK – MONDAY, JAN 23 2012

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MARKET CLICK – MONDAY, JAN 23 2012

Trader Mavens! Every Monday we give away $250 cash!
Congratulations to last week’s winners

Greece Default and Iran Sanction Fears to Set Trade Trends

  • EUR/USD fell 0.3% on news that the latest offer by Greek bondholders is their maximum offer. The IMF will now decide whether to accept a deal regarding Greece’s debt. Fear of Greek default continues.
  • Oil continues to dip but continued threats of sanctions against Iran could start pushing prices back up. If Iran does in fact close the Strait of Hormuz, investors believe future prices could rise as much as $40/barrel.
  • Investors will likely continue to take advantage of Gold’s sharp climbs and falls to profit short term, but for the long term, Gold continues to be the safe haven for investors against unstable and volatile currencies around the world.
  • Google dropped -53.58 points in one day amid lower than expected earnings. However the company outlook for 2012 is strong so expect investors to take advantage of cheaper prices to buy back shares this week.
ASSET CHANGE LAST TREND PLATFORM
NIKKEI + 5.44 8,771.80 UP HIGH/LOW
S&P 500 + 0.88 1,315.38 UP HIGH/LOW
NASDAQ - 1.63 2,786.70 DOWN HIGH/LOW
GOLD + 7.50 $1,671.50 UP HIGH/LOW
OIL - 0.39 $97.94 DOWN HIGH/LOW
EUR/USD - 0.003 $1.290 DOWN HIGH/LOW
USD/JPY + 0.12 77.04 UP HIGH/LOW
DOW + 96.50 12,720.48 UP HIGH/LOW
GOOG + 0.26 585.99 UP HIGH/LOW

How will you profit this week at OptionsClick?

WHAT SHOULD I TRADE? GOOG, GOLD, OIL, EUR/USD

WHAT ARE THE TRENDS? EU news will again lead trends. Look specifically for IMF announcements regarding Greece’s recent offer to avoid default.

WHAT PLATFORM SHOULD I USE? Use the HIGH/LOW platform for best results this week.

WHAT ELSE SHOULD I KNOW? US State of the Union address, US earnings reports and US jobs reports will be the motivation for mid to late week trading in the US.

Recent Popular Trends
GOOG LOW
OIL LOW
GOLD TOUCH
EUR/USD LOW

 

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Investment Safe Havens Find Support following Euro Fears

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“Safe Havens Find Support”

 

it's time to lay anchor in financial safe harbors for many binary options traders

Is your trading ship docked or out at sea?

The end of a volatile trading week saw investors profit-taking on gains made in the Euro in recent trading sessions and seek alternative positions in Gold, Silver and the USD. Fears over Greek debt and the possible default on their forthcoming loan repayment outweighed the positive results coming from the Spanish bond auctions which saw 6.6billion euros worth of debt sold off, which although produced lower than expected yields beat the maximum target of 4.5bn euros.

Falls in European and US stocks meant investors headed for the safe havens and Gold ended Friday up 0.74% trading at $1666.75 an oz, whilst Silver increased considerably, rising 5.43%, trading at $32.165 an oz.

Worth noting for Gold traders is that its correlation with the EUR/USD exchange rate is at its most positive for almost two years. This translates to the price of Gold is more likely to be moving in synchronization with the Euro than at any other point since Jan 2010.

In other commodity news, Crude oil fell at the end of the week as tensions in Iran and fears of closure in the Straits of Hormuz eased. The sell off in the EUR, initiated bullish actions in the USD, which caused Oil, a traditional hedge to the USD, to decrease in value. At close-of-play on Friday, the value of Crude Oil was down 2.14%, trading at $98.39 a barrel.

Later on this evening (Sunday) Japan is to release its trade balance figures. Growth has been slowing in Japan throughout 2011 and although estimates are for a better December than November, where flooding in Thailand hit exports, there will be more calls on action to be taken by the bank of Japan adding pressure on the JPY.

 

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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.

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