Binary Options News : October 21, 2013
Asian Markets Track the S&P 500 Higher
Global equity markets are all tracking higher today as investors are following the intraday record high in the S&P 500 set on Friday. We are also getting a strong sense the U.S. Federal Reserve will not taper back its massive $85 billion a month asset purchase program at its next meeting. It is now likely they will not begin to taper till early 2014.
This week will see a number of economic data flowing out of the United States that was delayed by the recent budget shutdown of the government. On Tuesday we will get the daunting non-farm payroll report (NFP). Today we get existing home sales. Die to these delays, it has made it harder for the Fed to gauge the economic growth and recovery and in all likelihood will delay the tapering of the bond purchase program.
This morning the Nikkei 225 (16,659.26 +0.67%) has seen a nice rise thanks to a weakening yen. The USD/JPY has fallen to 98.025 supporting Japan’s equity market.
The Shanghai Composite (2.221.91 +1.3%) has risen sharply thanks to better than expected GDP numbers. The markets will be focusing on the HSBC Flash PMI due out on Thursday.
The Australian benchmark, the S&P/ASX (5,381.80 +0.57%) is above the 5,330 mark for the first time in over 4 years. Last time we were this high was in 2008. Miners helped supported the index on the heels of good economic data from China.
The Dollar still looks weak across the board as the euro and Sterling track higher. However, we are seeing signs of tops in those markets.
EUR/USD (1.3676 -0.08%) has fallen back form the resistance at 1.3710 as we expected. It has also fallen below 1.3700 and is testing 1.3687 today.
GBP/USD (1.6168) has fallen from 1.6200. We are now noting a bearish head and shoulders which will bring the market lower. This is confirmed on a break below 1.6139.
USD/JPY (98.028) is moving lower but we seem to be consolidating between 100.60 towards 96.80 here.
CRUDE Oil (100.87) is bearish as we are aiming for 99.00. A move below that former level can test 98.50 then 98.00.
Gold (1318.22) is in a bullish pattern as some capital from China is boosting the yellow metal. We have resistance at 1325. A break above that targets 1360.
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