Daily Market Analysis March 23rd, 2015

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Global Market Review whyoptionsGood morning traders,

Last week saw a lot of market craziness post-Federal Reserve announcements. There was even a momentary decrease in the value of the USD, something we had not seen for the longest time, analysts are not sure whether this is a small setback on the back of the announcements or if this is the start of a decline for the USD. The EUR / USD managed to fall drastically and see a loss of 400 pips after peaking on Wednesday. The GBP / USD also saw a lower trade on Thursday and the USD / JPY is still at 121.80 making this its 7 and a half year high. Every U.S Equity that is ‘buck’ denoted had rallied after the announcement Gold and Oil were no different.

Gold, while the rest of the currencies are buckling post-Feds gold saw a good push in a bull direction. This commodity started to pick up on Thursday and ended last week on a high note it even increased in its value and on Friday continued to do relatively well. With a 2% rally against all past bad news reported over the last month, Gold closed the week at 1170 an impressive improvement. There is hope for this precious metal if it can break through the 1180 level the commodity will start seeing the bullish trend it deserves.

Another commodity that had seen dark days initially dropping to a new 6-year low on the back of the Crude Oil stocks earlier last week. Oil rallied on the back of the US dollar. The greenback plunged after the Federal Reserve released their dovish statement saying that they will continue to be patient in terms of hiking interest rates, even though they did not explicitly say the word ‘patient’.

Retreating back to a low is the way this commodity ended the week. I do not see a change in route for this commodity this week.

Friday saw the AUD / USD peak over 0.7800 also rallying on the back of the weakening USD. Sadly this positive spike was just that a spike and by the end of the Aus. trading day the pair retreated back to 0.7765. The is not much happening in Australian this week, so there should be no reason for further market volatility with this particular currency in the new week ahead.

In terms of the NZD / JPY pair that we did touch on last week, the BoJ faces the threats of propelling even more stimulus into their economy if they do not feel a sustained increase in inflation soon. The RBNZ, on the other hand, is comfortable enough to remain on the on the sidelines as it will only consider increasing interest rates sometime early next year. This will influence the pair I am just not sure by how much and in which direction just yet. If we look at this in more detail it means Japan is still trying to flee the bad economic growth in 2414-2015 while, New Zealand had its fastest growth economically in 7 years in 2014. I do expect more growth to come out of New Zealand this year. Japan will need to increase this if they are to see positive changes in the yen (JPY) in 2015.

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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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