Binary Options Trading analysis written by David Frank - BinaryOptionStrategy
Markets
Equity markets finished mixed in another thin, erratic session Friday. This comes as investors were reluctant to commit to the market ahead of the weekend and amid ongoing fear over the debt talks in Europe and Washington.
All three major averages closed at their worst levels in nearly two months. The Dow Jones Industrial Average edged out a gain of 25.50 points, or 0.22 percent, to finish at 11,796.23. The S&P 500 slipped 0.46 points, or 0.04 percent to end at 1,215.67. The Nasdaq fell 15.49 points, or 0.60 percent, to close at 2,572.50.
DJIA CHART
FOREX
The outlook for the Japanese Yen continues to depend on which currency pairingis in question. This is with the crosses continuing to show a strong sensitivity to broad based market sentiment trends while the benchmark USDJPY is distorted by intervention risk. However, the principal consideration for the week ahead is the severity of Eurozone sovereign stress and investors’ resulting demand for the Yen as a safe haven.
The Yen fulfills both critical characteristics of an attractive safe haven asset. It is the world’s third most traded currency. This fact making the market liquid and thereby a compelling place to park capital at times of crisis because retrieving it is relatively easy once a problem passes and reallocation to higher yielding investments is desired. The Yen is also an excellent store of value courtesy of Japan’s anemic inflation rate. In fact, year-on-year CPI has been sinking deeper into negative territory over the past three months.
USDJPY Chart
COMMODITIES
Oil prices dropped below $98 per barrel Friday at the end of a volatile week. The week showed mixed fears about Europe’s debt along with the prospect of tighter oil supplies and improving economic conditions in the US. Gold closed $4.90 higher to $1,725.10. Even thouggh gold was losing momentum in after-hours trading. The gold price has traded as high as $1,738.50 and as low as $1,711.40, while the spot gold price was up $4, according to Kitco’s gold index. Gold’s strength was due to the change in the US dollar as physcal demand was $2 lower.
Gold Chart
EQUTIES
Marvell Technology gained even after the chipmaker posted a decline in revenue and warned that the flooding in Thailand may hurt demand for hard drive controllers. Salesforce fell after the web-based software maker reported a quarterly loss as its market and sales costs increased sharply in addition to a tepid outlook. Clearwire tumbled more than 30 percent after the wireless Internet service provider’s CEO discussed whether the firm would make its debt payment due Dec. 1 Shares were halted four times.
Markets
Equity markets finished mixed in another thin, erratic session Friday. This comes as investors were reluctant to commit to the market ahead of the weekend and amid ongoing fear over the debt talks in Europe and Washington.
All three major averages closed at their worst levels in nearly two months. The Dow Jones Industrial Average edged out a gain of 25.50 points, or 0.22 percent, to finish at 11,796.23. The S&P 500 slipped 0.46 points, or 0.04 percent to end at 1,215.67. The Nasdaq fell 15.49 points, or 0.60 percent, to close at 2,572.50.
DJIA CHART
FOREX
The outlook for the Japanese Yen continues to depend on which currency pairingis in question. This is with the crosses continuing to show a strong sensitivity to broad based market sentiment trends while the benchmark USDJPY is distorted by intervention risk. However, the principal consideration for the week ahead is the severity of Eurozone sovereign stress and investors’ resulting demand for the Yen as a safe haven.
The Yen fulfills both critical characteristics of an attractive safe haven asset. It is the world’s third most traded currency. This fact making the market liquid and thereby a compelling place to park capital at times of crisis because retrieving it is relatively easy once a problem passes and reallocation to higher yielding investments is desired. The Yen is also an excellent store of value courtesy of Japan’s anemic inflation rate. In fact, year-on-year CPI has been sinking deeper into negative territory over the past three months.
USDJPY Chart
COMMODITIES
Oil prices dropped below $98 per barrel Friday at the end of a volatile week. The week showed mixed fears about Europe’s debt along with the prospect of tighter oil supplies and improving economic conditions in the US. Gold closed $4.90 higher to $1,725.10. Even thouggh gold was losing momentum in after-hours trading. The gold price has traded as high as $1,738.50 and as low as $1,711.40, while the spot gold price was up $4, according to Kitco’s gold index. Gold’s strength was due to the change in the US dollar as physcal demand was $2 lower.
Gold Chart
EQUTIES
Marvell Technology gained even after the chipmaker posted a decline in revenue and warned that the flooding in Thailand may hurt demand for hard drive controllers. Salesforce fell after the web-based software maker reported a quarterly loss as its market and sales costs increased sharply in addition to a tepid outlook. Clearwire tumbled more than 30 percent after the wireless Internet service provider’s CEO discussed whether the firm would make its debt payment due Dec. 1 Shares were halted four times.