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BLURRY VISION

BITCOIN 781.950 11:20 03.12
BitCoin/CNY 5382.550 11:20 03.12
BITCOIN 782.045 11:00 03.12
BitCoin/CNY 5383.210 11:00 03.12
BITCOIN 782.136 10:40 03.12
BitCoin/CNY 5383.835 10:40 03.12
BITCOIN 782.186 10:20 03.12
BitCoin/CNY 5384.175 10:20 03.12
BITCOIN 782.498 10:00 03.12
BitCoin/CNY 5386.325 10:00 03.12
BITCOIN 780.288 09:40 03.12
BitCoin/CNY 5371.115 09:40 03.12
BITCOIN 781.315 09:20 03.12
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Markets are deepening the gash that is the current correction in US markets. For each session following the Federal Reserve’s decision not to taper off the current stimulus package, binary options traders have been witnessing a real fall from grace. The initial reaction to the news from last Wednesday, which albeit was a bit over enthusiastic, caused markets to fly higher as the enormous amount of cash used for quantitative easing, 80$ billion, would continue to flood markets for months to come.

 

But the fact that the Fed decided that this isn’t the time to take away the easy money is really testament that the economy is much weaker than previously perceived or that the economy is expected to struggle further in the coming months.

 

That is the real reason the correction actually makes sense. Markets have come to the conclusion that they can’t allow what seems to be short term positive news, like QE3 being maintained for a few more months, to blur their vision from the general economic outlook, which happens to be rather poor.

 

It’s not that the economy is in shambles or is otherwise in a serious problem. It’s not, but it’s also not providing any real signs of a strong and robust recovery which is what the Federal Reserve is hoping to see before curtailing the whole capital influx.

 

The correction yesterday carried on and the S&P fell below 1693 and closed at 1692 after losing 0.27%. The DOW and Nasdaq both fell as well with the Dow Jones stock index falling 0.4% to 15273 and the Nasdaq tech heavy index falling 0.19% to 3761.

 

But for those following forex pairs, indices just weren’t very interesting yesterday as no major supports were broken, things were probably far more exciting. The EUR/USD headed back higher as all USD based assets fell including commodities and the USD itself. The EUR headed back above 1.35 and is currently trading near 1.3523. Binary options traders looking for strong examples of an asset with room to move it’s the EUR/USD. There are analysts already speculating that the real price of the forex pair should be somewhere closer to the 1.39-1.41 region.

 

The main reason for this is the general weakness in economic outlook. But don’t be too tempted to go all in on the EUR/USD to the upside just yet. Despite the USD suffering and looking to get hit hard again, we do have next week’s Non Farm Payrolls report. While a bit early to start discussing this now, we are concerned that such events are already blurring the vision of traders everywhere.

 

So for the coming trading day, try to maintain focus strictly on what’s directly in front of your eyes. Your charts are your guide as binary options traders today. Keep things simple while maintaining a down-side bias on USD based assets as we don’t expect an y immediate shift in outlook for the day ahead even if the Asian session looks to be providing some glimmer of hope for the end of this correction.

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