USD Maintains Safe Haven Status

Published 02/23/2013, 04:57 AM
Oh how times have changed binary options traders, think back to just a year ago and the desolation that was the USD. Now the USD is the go-to currency for investors that are looking for a safe haven for their investments. This comes at a detriment to other currencies, most of the majors in fact as well as the commodities. Gold is suffering at its lowest level since July 2012, The GBP and EUR are taking a beating and oil amidst worries over global growth continues to plummet. It’s already been tumultuous session in Asian trading and the volatility that we are seeing looks to continue on into European and American trading sessions. The volatility is great for binary options traders who need these big movements to be able to forecast asset directions. CPI figures in the US will be released later today, another indicator of the health of the US markets which will affect the USD. The Federal Reserve yesterday hinted to a slow down and even perhaps an end to further Government bond buying. Even though its just a hint in the short term it sent investors running towards the USD.

Stocks

Eurozone stocks performed badly this morning after disenchanting data came out from France and Germany. The French Manufacturers PMI index gained less than expectation to an adjustment of 43.6 and French service sector activity dropped to a 4 year low of 42.7. The German PMI gained less than expected to a reading of 50.1 against an expected reading of 50.5. In US stocks at close of markets the DJIA dipped 0.77 per cent, the S&P 500 sloped 1.24 per cent and the NASDAQ dropped 1.53per cent. Asian stocks were heavily sold after the Fed Reserves minutes were releases. The Hong Kong Hang Send dropped by 1.8per cent, Australian ASX 200 plunged 2.3 per cent and the Nikkei 225 in Japan closed down 1.4per cent

Forex

The USD remained higher against all of its major counterparts today resulting from the weak data coming from Europe. In European trading this morning the USD stayed higher against the EUR with the pair dropping 0.84 per cent to 1.3712. The USD retreated against the GNP by 0.11 per cent to 1.5215. The dollar also retreated against the Yen by falling 0.47 per cent to a value of 93.13. The dollar was also higher than the CAD, AUD and NZD with a rise of 0.34per cent to 1.0199, 0.19per cent to 1.0238 and 0.20per cent to 0.8341 respectively. The USDX dollar index which follows the greenback against its major counterparts went up 0.49 per cent to 81.56. The USD did rise against the Swissy with USDCHF rising 0.59 per cent to 0.9322. The EURGBP regained after 15 month lows against the EUR by dropping 0.46per cent 0.8679.

Commodities

Not the place to be at the moment with Gold at six months lows down 0.84 per cent , Silver down 0.58per cent and Crude Oil down 0.72 per cent.

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