This past week has been positive, especially for Nikkei 225, which is the winner of the week with gains of 2.7%.
Nikkei is on a gaining edge and is boosted by the weaker Japanese yen . On Friday, the Nikkei Stock Average JP:NIK +3.29% climbed 3.3% to 14,466.16 after the U.S. dollar surged against the yen overnight. The greenback is expected to trade even higher in the event of a strong U.S. jobs report. In addition, monetary easing is a big factor in this index increases. The dollar USDJPY -0.5926% was recently at ¥99.66, compared with ¥99.56 late Thursday in New York.
Also, among the winners of the week is Nasdaq 100, with a weekly gain of 2.1%. Partly, the advances of NASDAQ-100 were slightly flattened out on Friday and weakened after the release of weaker-than-expected U.S. Non-Farm Payrolls data. The price action suggests investor uncertainty which tends to lead to weaker prices because investors lack the conviction to drive the market higher. Still however, these developments weren’t enough outgain the winning trend of Nasdaq 100.
On the upside, Washington reported that the economy gained 162,000. Additionally, the unemployment rate dropped more than expected to 7.4% versus the preliminary guess of 7.5%.
The USD was one of the currencies that finished the week with a gain. The USD’s weekly advances counted for 0.3%. It looks like it is found into a head and shoulder bottom.
The left shoulder is formed at the end of an extensive move during which the volume is noticeably high. Such an indication takes time to develop, very likely a couple of months. Most binary traders understand that usually after the peak of the left shoulder is formed, there is a subsequent reaction and prices slide down, which generally take place in times of low volume. The prices advance to form the head with normal or heavy volume and subsequent reaction downward is accompanied with limited volume.
On the other hand, the biggest Forex loser of the week has been soybeans with a massive lost of 10.2%.
The result is that the binary soybean market first sawed higher and then plunging on Friday’s close to finish at contract lows on heavy volume. This implies that the market is acting very heavy currently.
Additionally, another major development is the temperatures, which are still cool in the Chicago land area with 80 degrees ahead for the next 5 days. This is very likely to be beneficial for the crop as the summer comes to an end with harvest starting in 6-8 weeks in the Mid-West while harvest has begun in some parts of the Southern United States.
Moreover, multiple binary analysts believe that year will generate in record crops across the board. Therefore, it might be wise for binary investors to make mainly short position on the
entire grain complex while another record crop down in Brazil this winter could send stock piles to their largest levels in years.
Furthermore, binary specialists should consider the fact that the U.S dollar is near 3 year highs. Some US farmers are in realty expecting to get 200 bushels per acre which is well above the
USDA estimate of around 160 bushels an acre.
Last year, around this time the thermometers were hitting 100 degrees with night time temperatures in the high 80s to low 90s, which over the course of time stunts crops. However, if binary traders closely look at the 10 day forecast it looks as if this year’s weather will continue to remain excellent.
Last week’s winner, binary gold lost ground heavily. Gold marked loses of 0.7%. However, binary traders should reamin careful because the gold market should remain supported with the elevated unemployment. For instance, Asia demand has been supportive of the physical gold as about 1,000 metric tons have been exported to Asia in the last couple of months by the US. The ETF outflows in July were about 52 metric tons.
This period we witness a solid week for sugar futures, which added 1.6%. Sugar futures are trading above their 20 but below their 100 day moving average settling last week at 16.47, while today are at 16.88 right at a 4 week high.
The range of change of the other traded instruments is between + 2.7% to – 10.2%, as follows:
|Nikkei 225||+ 2.7%|
|Nasdaq 100||+ 2.1%|
|Natural Gas||– 6.2%|
The above information is as of 03/08/2013, 11:47:45 ED
The information in the above 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.