Across The Board Dollar And Yen Weakness vs AUS

The US dollar and Japanese yen got absolutely hammered yesterday against its major peers. The Aussie dollar is at the highest level to the yen since August 2008 and is testing the 1.06 level to the US dollar. The bullish sentiment started with strong Chinese trade data and continued with the European Central Bank leaving rates unchanged and saying that they see the region’s economy gradually recovering. Investors are looking for higher-yielding assets on the back of this positive data.

Japanese Yen Down On More Stimulus Bets

The yen continued its weakness as the Bank of Japan looks set to cooperate with new Prime Minister Shinzo Abe. The yen is on its ninth week of declines. The Prime Minister’s cabinet approved $116 billion in new fiscal stimulus.

The selling pressure in the yen has been relentless. Binary puts on the yen have just been minting money for binary traders. This move down in the yen is being driven by fundamentals and technicals. It is a perfect storm creating a clear trend that traders can ride. Do not fight this trend. Stick to binary puts and do not think of being a contrarian and fighting this trend. The Japanese government wants the yen weaker and you cannot fight a government! Binary traders are hereby warned to stick to binary puts for the time-being until we see a trend reversal.

Analysts at Societe General, Morgan Stanley and Citigroup all lowered their yen forecast for 2013. Morgan Stanley sees the yen at 100 to the US dollar by the end of the year, compared with an earlier forecast of 90. Societe General forecasts 97 yen to the dollar versus 87 earlier and Citigroup predicts 90 yen to the dollar, up from 87.

Oil Rises On Saudi Production Cuts

Crude oil rose yesterday along with other risk assets on the back of positive globale economic sentiment, but going forward a bigger driver for prices might be the Saudi production cuts. Reports out of Saudi Arabia indicate that crude oil production in the Kingdom was the lowest in 19 months.

For binary traders, this a very bullish scenario and traders need to continue to play binary calls in this market. A cutback in production along with positive global data can push this market thru $95 a barrel. Crude oil was last trading at $93.84, up 2 cents.

Gold Rises On Strong Chinese Demand

Demand for gold out of China is proving to be stronger than expected. Gold was last trading at $1673.90, down $4.10. Gold is poised to end six weeks of losses this week with the rally we’ve seen. Demand is strong out of Japan as well as pension funds are buying to offset the government’s actions towards the yen.

Key levels for binary traders to watch are $1700 gold, $31 silver, and $1650 in platinum. These are key resistance numbers and will determine the direction for prices. If we break through, we can see much higher prices. If the markets fail at those prices, look for a correction.

All Eyes On USDA Farm Report

The US Department of Agriculture will release its supply, demand and acreage report for grains at 830am New York time. There is huge volatility on the release of these reports and binary traders need to be prepared. Corn was last trading at $6.97 a bushel, wheat at $7.44 a bushel, and soybeans at $13.76 a bushel. The expectations are for a bullish corn report and bearish wheat report. Traders have been buying corn ahead of the report, while they’ve been selling wheat and soybeans. Traders need to stay alert as this is a fun report to trade!

As always good luck to all binary traders and be sure to check back for the latest updates!