June 25 Weekly Highlights for Binary Options
Weekly market analysis by OptionFair
European stocks declined for a third day as George Soros warned that failure by leaders to produce drastic measures at a summit this week could spell the demise of the euro currency. U.S. stocks fell, ending a two-week winning streak by the Standard & Poor’s 500 Index, after the Federal Reserve cut its economic forecast and a bear market in commodities prices dragged down energy producers. Asian stocks fell as UBS AG (the world’s largest mining company) cut its profit outlook for BHP Billiton Ltd. and the Bank for International Settlements said central banks are nearing the limit of their ability to boost economic growth.
Oil traded below $80 a barrel for a third day in New York amid concern that Europe’s debt crisis will curb demand for fuels. “The outlook for oil remains negative while concerns remain about the economic outlook in Europe weigh on demand”, Michael Hewson, a London-based analyst at CMC Markets said. “Investors remain skeptical that EU leaders will be able to agree on anything tangible to alleviate the current crisis.”
The U.S.D gained against the Euro as the Federal Reserve confirmed its intentions to extend “operation twist” to bolster economic growth. The British Pound finished the week slightly lower against the U.S.D as market sentiment turned towards risk on hopes that the crisis in the Euro region will be resolved. Risk appetite increased as the ECB announced it would ease up on the requirements for collateral on loans. But sentiment towards the British currency remained under pressure as three major U.K. lenders were among the banks Moody’s Investors Service downgraded. The Canadian Dollar weakened against the U.S. currency as reports showed that Consumer Price Inflation fell by 0.1% in May, bringing the annualized rate of inflation to 1.2%.