July 27, 2012
This week again, the markets have been very volatile during the trading week. The binary US stock markets have been sideways for the majority of the week. Binary options on NASDAQ100 are presently slightly lower, as a corrective reaction to the current gains of the beginning of the week. In fact, the index fall by 1.1% compared to the beginning of the present week. Simultaneously, S&P 500 (SPX) was higher for the week by a mere 0.43% with most of the other indices.
However, the long-term news from the Asian and the Euro markets are not very promising. The Eurozone is in а crisis and the ECB is struggling to make sure the EUR will survive. Тhe top economy of the continent, Germany, was this week down-graded by Moody’s. The rating agency changed the Aaa-rated countries of Germany, Netherlands and Luxembourg credit standings to negative. Thus, the agency put these countries in line with Austria and France which have been on a negative outlook since February 13, 2012. Only for now, Finland manages to maintain its stable outlook.
Moreover, Italy was hit by the standing of Egan Jones. The rating agency, re-ranked the country to CCC+ From B+. What is even more worrying is that some binary option analysts believe that Rome would be additionally downgraded in a time of 2-3 months.
On the other hand, most likely only for the very short-term, the remarks of the ECB president, Mario Draghi, lifted the Euro markets. Draghi pledged to take whatever measures were necessary to preserve the euro, triggering a buying frenzy. Thus, the CAC40 surged 4.1% to 3207, the DAX jumped 2.8% to 6583, and the FTSE rose 1.4% to 5573. However, with the current ratings and issues this could be very-short lived Euro propel.
The biggest winner of the week on the futures’ market is Cocao with a gain of almost 4.3%. It replaced binary Soybean Meal as the winner of the week. Soybean Meal lost this week alone 5.6%.
The second largest winner is Lean Hogs. It managed to add 3.0%. Both winning trading assets of the week: Cocoa and Lean Hogs moved in the same direction, which we could say is typical.
On the other side, the biggest loser of the week is Coffee (-6.1%), followed by Sugar (-6.0%). Binary Coffee only 2 weeks ago was the biggest gainer of the week and now the market, this week sent it at the bottom.
The biggest index loser is Nasdaq100 (-1.1%), followed by Nikkei (-0.5%). China pledged to keep property curbs. Beijing won’t relax property control policies and will instead seek to keep a firm grip on the real estate market to prevent a rebound in housing prices. Additionally, the net income of the major Chinese companies declined compared to the same period of the last year.
Commodity instruments finished the week into a positive territory. They managed to increase in value and this was helped by the declined USD (-1.1%). Digital traders are buying binary call options in order to redress the imbalances. Binary gold gained 2.4%, while, silver was up by 1.1%. However, it was surprising to see copper losing 0.5%, which greatly performed last week.
ECB President’s remarks stimulated the Euro and it positively finished the week (+ 1.2%). After recovering for two days in a row, EUR must now overcome the 1.2332 level, its July 19’2012 high to extend its correction. If this occurs, further strength should build up towards the 1.2407 level which also serves as its .50 Fib Ret (1.2748-1.2040 decline
Most of the other currencies, managed to increase as well. After the EUR, the CHF gained the most (+1.2%). GBP added 0.7%, while last week’s advanced by 0.9%. The USD is the biggest loser again, it depreciated by 1.1%. This followed last week’s loses of 0.5%.
The range of change of the other traded instruments is between + 4.8% to – 6.1%, as follows:
|Soybean Meal||- 5.6%|
The above information is as of 27.07.2012, 02:06:15 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.