Daily Market Analysis 10th February, 2015

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Market News whyoptionsGood morning,

After a rather eventful end of the week last week, we see the US Dollar (USD) taking the bull by the horns and riding the wave to greater price levels, all thanks to the NFP report. The Australian dollar (AUD) sees a bear market and continues its decline amidst Chinese trade numbers, which had ended the trading day yesterday for the pair AUD / USD at a low of 0.8000. As the economy of the USA continues to get stronger, China and Australia are drowning in the success of the USD.

An enormous event occurred in the markets earlier last week. The German 10-year bond yields had fallen below Japan’s for the first time. This is highly important for our trading this week for two main reasons. First, the analysts believed that Japan was a lot more resilient to the danger of deflation in comparison to the Eurozone. Japan has been constantly fighting deflation for over 20 years now, this could symbolize a sign of a loss in monetary policy during a currency bloc. Should this be the case, then this issue could very well become a permanent feature in Japan’s economy. On to the second reason, German’s yields have become a trader’s safe haven as most investors had turned to Germany during the ‘Greek Euro tragedy’. What does this mean for us? This could mean that the EURO may very well make a slight comeback in the days ahead, in spite of the Greek frenzy. Whilst the Yen (JPY) is decreasing in its popularity amongst traders.

Crude oil remains in the market news for the time being. Even though the US jobs data had maintained its positive growth streak, Oil had not reacted much to the celebrations. Seems that the production of oil is one-sided and still coming from a supply side rather than that of demand. Should we see an economic improvement in the demand for Oil in the next coming weeks I’m certain that Oil is going to stay in this trend. The hike in last week’s oil price seems to have come from emotionally charged speculators, so nothing that is solid in the markets activities where this commodity is concerned.

Trading Tip For Tuesday:

It is hard to see the USD losing much ground for the time being. My choice for trading, today is a CALL on USD / AUD. Or if you wish to trade the alternative, strike a PUT on the AUD / USD.

Happy trading by whyoptions.com!


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Jason B Kruger

Professional Trader at WhyOptions
Jason B. Kruger is a Professional Trader & Chief Editor for WhyOptions.com, who is considered ‘The Authority’ on Binary Options Trading Strategies, Reviewing Brokers,Providers and their Products.
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