Binary Options Daily Analysis – Dollar Turns Bid

 

Reversing the prior day’s losses the Dollar turns bid. Bolstered by strong global equity performance, positive U.S Federal Reserve minutes, and better than expected Housing data, the U.S Dollar came roaring back. The DXY looks to close back above 80 as the EUR and GBP gave back all their gains. After testing resistance near 1.38, the EUR retreated below 1.36. The Pound sank below 1.5675 on intraday trading after attempting to move above resistance at 1.58.

 

Global Equity Markets rallied strong for a second consecutive day. The Nikkei 225 gained 2.72% while the DJ Euro Stoxx 50 added 1.52% and the FTSE 100 advanced .62%. On Wall Street, the DJIA picked up 40.43 points to close the session at 10,309.24. Leading the equity charge yesterday was Consumer Services as that sector picked up .97%

 

Treasuries slid today on the release of the FOMC minutes, which discussed reducing the size of the balance sheet buy selling securities. An addition, although the verbiage of keeping rates low “for extended period of time” is still regurgitated there was some alluding to the fact that a global recovery is underway and at some point the Fed will have to revisit its low rate policy. Commodities also came under fire as the Greenback continued to build strength right into the U.S session.

 

On the economic data release docket for today we have the PPI data in the U.S, as well as weekly Jobless Claims and Leading Indicator set to print. CPI data will print in Canada and an Interest Rate decision in Japan is due out.

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