Binary Options Analysis – The Dollar Slides

Equities:
We have to appreciate days like Thursday as they do not come around as frequently as they used too. Global equity markets put on a small rally yesterday spurred by greater than expected growth in Japan and China. The Nikkei 225 added 103.52 points to close back above 9,500. In Europe, the Stoxx Europe 50 pushed ahead by 1.16% to 2,400.51 and the FTSE 100 advanced 46.64 points to retake the 5,100 mark. On Wall Street, traders were buyer as gainers beat losers by more than 7 to 1. The DJIA soared 273.28 points to retake the 10,000 mark.

Commodities & Treasuries:
Oil rose for a third straight session for the first time in more than a month. Oil gained $1.52 and closed at $75.48 a barrel. Gold was down for a third straight session, losing more than $10 an ounce to close at 1,222.20. The U.S Treasury sold $13 billion 30-yr bonds on Thursday as yields soared. The 10-yr fell 16/32nds  pushing yields up 14 bps to 3.32%.

Currencies:
The Dollar has seen better days but the DXY still remains a notch above 87, but suffered a loss of 1%. The EUR finally rose after selling off nearly a week ago. It gained nearly 140 pips or 1.26% to close at 1.2141. The big winner on the day was the AUD gaining almost 280 pips or 2.70% to close at .8506. The Kiwi and Canadian Dollar were up as well as commodity price rose. The JPY was flat closing at 91.35.

DXY

DXY

Economic Outlook:
China to the rescue, as it appears exports rose the most in 6 years. The news was preceded by Japan’s GDP print coming in at a healthy 5.0% versus consensus expectations of 4.2%. In Australia, the Unemployment dropped .2% from the prior month to 5.2%. This news gave traders some needed confidence to push equity markets higher as they reduced holding in safe haven assets such as Gold and U.S Treasuries. As expected the ECB and BOE held rates steady. In the U.S today, Advanced Retail Sales figures will print. The market is desperately hoping to see these numbers beat expectations to keep the equity rally alive. However, Friday has not been a positive day for equities over the last 6 weeks.

- Alex Perlmuter

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