This week has finished in negative territory for the binary stock markets. The fears about the debt crisis in Europe and the quality of the U.S. quarterly results resurfaced. The start of the week was neutral. However, the upside direction lost steam quickly. The trading ranges have been expanded and the binary put options became the most traded vehicles.
The biggest winner for a second consecutive week is the binary Coffee. It is influenced by the rainy weather in Brazil. As it is well-known the asset is in correlation with what is happening in Brazil. The country is the largest producer of coffee. However, the binary traders wonder about the quality and yields of the crop. Generally, the trend is up and the binary traders will witness higher prices in the coming weeks. The underlying instrument managed to increase by 4.8%. The second biggest winner is binary oil. It managed to add 3.8% this week. The correlation between the binary instrument and the greenback has changed. Both trading assets move in the same direction which is not typical.
The biggest loser of the week is the binary NIKKEI225. The index lost 5.2%. The uncertainty about the potential of the binary markets weighs on the mood of traders. The binary instrument has become highly volatile and this week the downside pressure prevailed. The second biggest loser is the binary NASDAQ100. Fears about the quality of the quarterly corporate earnings released by the big technology companies are the main reason for this steep drop this week. The binary instrument lost 2.5% of its value closing at 2551 points.
Commodity instruments finished the week in positive territory. They managed to increase in value despite the increase in the binary U.S. dollar. The reason is that the binary assets have lost a lot in the precedent months. They are oversold and represent good bargains. The binary traders are buying binary call options in order to redress the imbalances. Binary copper increased by 2.0% finishing the week at $3.43. Binary silver is struggling to bounce off multi-year low. Binary traders bid the binary instrument convinced that the upside potential is huge. The binary options added 1.6% reaching $27.20. Binary gold continues trading in a consolidation. Binary options have tested $1560 mark several times before pushing slightly higher closing at $1582 or roughly 0.2%.
The greenback advanced this week. The uncertainty about the European debt crisis made the European currency lose against the U.S. dollar. Binary options appreciated by 0.2%. Many of the other currencies managed to increase this week. The JPY was the biggest winner adding about 0.5%. Binary CAD was buoyed by the increase in the binary gold and advanced by 0.3%. The European currency is the biggest loser of the week decreasing by 0.7%.
Binary indexes underwent downside pressure this week. S&P500 lost about 1.5% finishing the week at 1334.76 points. Binary Dow Jones Industrials lost almost the same percentage. It depreciated by 1.56% closing at 12573 points. Next week will be very hot for the American markets. Many of the bellwethers will release their results. From overseas binary indexes DAX30 is the only one finishing the week in the green. It increased by 0.5%. The other peers are in the red. Binary IBEX35 lost 2.3% while FTSE100 decreased by 0.8%.
The range of change of the other traded instruments is between +1.8% to -0.8%, as follows:
The above information is as of 29.06.2012, 04:06:15 EDT
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.