Binary Options News : April 25, 2013
USD Lower, Commodities Higher as Risk On Continues
Asian trading overnight saw commodities continue to make gains whilst more and more investors moved out of their USD safe havens and into riskier assets such as stocks.
Helping push the regional benchmark index for Asia towards its highest close since 2011 was the news that South Korea’s economy increased at its highest rate in 2 years for Q1, despite heightened tensions between the North and South. The Bank of Korea announced overnight that economic growth increased 0.9% in the first quarter compared with the 0.3% recorded in the fourth quarter of 2012. On a yearly basis, South Korea’s GDP growth remained unchanged at 1.5% after analysts had been expecting a Q1 increase of 0.7% and yearly growth of 1.4%.
The USD lost its status as a safe haven with more gains in the commodity markets whilst the Greenback was lower against most of major currency pairs.
Asian shares extended their winning streak with Japan’s Nikkei 225 heading towards the 14,000 level which has not been reached in over 5 years. The Nikkei 225 has already increased nearly 60% over the last 6 months and many analysts are predicting the 14,000 mark to be tested this week. Hong Kong’s Hang Seng gained 0.49% whilst Australian and New Zealand exchanges are closed today due to public holidays.
The USD found itself under pressure in overnight trading as a risk on sentiment sweeping the markets meant the Greenback was not the safe haven investment it was a week ago. The EUR/USD was up 0.18%, whilst the GBP/USD was up 0.37%. The commodity linked Aussie benefited from the rise in commodities and gained 0.32% against its US counterpart.
Another day of high volume trading for the commodities with both gold and silver continuing their gains in Asian session. Gold was up 1.49% cent and Silver 1.58%. Stockpiles of crude oil were below expected figures causing the price of Crude to rise while natural gas carries on falling on continued warm weather forecasts in US and Europe. Natural gas dropped 0.42 per cent
Investor focus firmly on Q1 GDP data out later data for the UK, investors are quietly confident that the troubled country will manage to avoid a triple dip recession. Then attention moves across to the US with its key jobless claims which will push US trading session.
* * * * * * * * * *
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