Investors are in fear regarding the next move of the financial instrument since price sensitivity has increased to great extent featuring Tuesday’s U.S presidential election. Professional traders overly cautious about their investment and most of leading hedge firm are staying on the sideline to trade safely after the dust settles in the market. The Asian stock reacted aggressively with a strong a strong bounce in Monday morning after the FBI reestablished their view with a positive tone about Hillary Clintons private mail server use. Though the Asian market stock went up significantly on Monday morning but investors are overly cautious about the sudden gain in the stock market. In the eyes of trained professional, the market is most likely to remain overly sensitive until the presidential election is over. With the sudden gain in the strength in the Asian market, there has been a sharp fall in the S&P 500 index in the last week. To be precise the technical bouncing off the Asian stock is the resulting economic event of the heavy fall of the S&P 500 index which recorded its longest losing streak since1980.Professional traders and investors are now into the world of massive confusion since the Global economic sentiment is extremely fragile at the current moment with so many major pending economic event and critical decisions. The recent exponential oil production by the world largest economy has also caused chaotic price pattern which might even lead to an extremely sharp fall in recent days.
The mighty green bucks’ stills hold its control
The mighty U.S dollar was suffering from extensive loss from the very beginning of the year 2016 and this has been furthermore intensified due to recent ongoing interest rate hike decision by the FED in the month of December. Last week the green bucks slipped lowered against its all major rivals in the Friday on the event of the major economic news release of the U.S employment report even though the data was significantly good. The U.S economy added 161,000 jobs in the last month and the average hourly earnings rose significantly to 2.8% which is the biggest rise since June 2009.The recent performance of the U.S economy is pretty good since most of the major economic news release for the U.S economy came positive in the last few months and investors are marking this positive news releases as a sign of financial and economic stability for the U.S consumers. The dollar might exhibit an extreme level of volatility on the event of the presidential election and investors are in fear about the extreme sensitivity of the financial instrument. To be precise ,fundamentally the green buck has shown enough promise in the last few weeks which has increased the proximity of rate hike decision to 70%.From a technical perspective, the green buck is strongly bullish at the current moment and investors are keeping a keen eye on the critical resistance level at 98.00.If the critical resistance level at 98.00 fails then we might see a strong bullish move from the U.S dollar in the upcoming days which will eventually challenge the next resistance level at 99.
Great Britain pound still vulnerable
The Great Britain pound has recovered to great extent in the last week and has overcome the most critical resistance level at 1.2550.Investors were strongly bearish on the GBPUSD pair but on the event of the recent bullish breakout, investors are thinking that the great Britain pound might show some extensive strength in the market to recover its losses occurred in the Brexit event. On the other hand, the recent stable performance by the U.S economy is threatening the bulls of the Great Britain Pound since the FED is most likely to hike their interest rate in the month of December. Previously there was only 637% probability but things are changed along with the stable U.S economic growth. So there remains the ongoing battle between the sterling and the green bucks and this has been furthermore intensified by the U.S presidential election. According to the leading economist, there is strong chance that the market will be extremely volatile on Tuesday election and traders mind find it extremely difficult to trade the sterling due to its extreme volatility and large spreads. Though the short term gain of the Great Britain pound is very promising but there remains lack of confidence in the bullish since the market sentiment is still bearish. To be precise the two major economic head is under extreme pressure and investors are in a smoke since they don’t have any clear indication about the next move of the market under this extreme sensitive conditions.
Extreme volatility in gold
Precious metal traders are having a hard time due to extreme volatility created in the gold market in the event of the upcoming presidential election and pending interest rate hike decision by the FED. There has been a sharp decline in the zero-yielding metal on Monday which hit pushed the price down to $1285 after the FBI remove the charge on Hilary Clinton for using the private mail server. The recent move in the stock market has clearly demonstrated the positive public sentiment which goes in favor of Hillary Clinton. Traders are highly advised to trade different financial instrument especially precious metal with low risk since there might be extreme swings during the event of the presidential election on Tuesday. Technically the gold price might further fall towards $1270 from $1285.In the eyes of trained professional staying on the sideline will be the best act if there remains any sort of confusion regarding the next move of the gold price. The extreme price sensitivity is expected to fade out from the market upon the completion of the presidential election on Tuesday which might create some sort favorable trading environment to the traders in the upcoming days.