Here’s Friday’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:
Main Trading Event Of The Day: GBP Current Account @ 09.30 GMT
WHAT WE’RE WATCHING TODAY
Dollar Gains But Euro Weaker As ECB Considers Easing
The dollar gained against the euro on Thursday as investors bet the Federal Reserve will start hiking rates before Europe’s central bank, which has signaled it could loosen monetary policy soon. Fed Chair Janet Yellen said that the central bank could potentially raise rates after a period of about six months from the end of its bond-buying program. That puts the first hike as early as next spring and has surprised market participants. At the same time, the euro has been under pressure on rising expectations the European Central Bank will move to further ease monetary policy in an effort to stave off deflation. The euro EUR/USD changed hands at $1.3744, down 0.3% on the day. The shared currency has weakened since ECB officials this week signaled the central bank would consider negative deposit rates and a move toward outright quantitative easing. The U.S. dollar added slightly to gains after the Labor Department said the number of people who applied for first-time weekly jobless benefits fell by 10,000 to 311,000 in the week ended March 20, the lowest level in four months. Economists had forecast claims of 320,000.
Gold Near 6-Week Low; Heading For Second Weekly Loss
Gold recovered slightly on Friday after sharp overnight declines but the metal remained near six-week lows and on track for a second straight weekly decline, as improving sentiment over the U.S. economic outlook dented its safe-haven appeal. Bullion has dropped about $100 an ounce from a six-month high in the last nine trading sessions on strong U.S. economic data and comments by Federal Reserve chairman Janet Yellen that interest rates could rise in the first half of 2015. The sharp drop in prices in the last few days is expected to bring physical buyers back into the market and help gold prices consolidate although some analysts have expressed concern that there could be a further downside ahead for gold and that the metal will struggle in the face of weak demand and forecasted rising real interest rates in the U.S.
Is Social Media The Future Of Trading?
Stock prices are driven largely by mass psychology while social media enhances people’s ability to share opinions and news on a large scale. As more individuals join the social networks Facebook, Twitter, or LinkedIn, their role in spreading information will increase. Market information will be more easily shared amongst consumers of social media, decreasing the time it takes for potential investors to react to changing conditions. Simultaneously, the reaction time of potential investors to opinions will decrease. If there are rumours surrounding a stock or other investment and no factual information to check them with, social media users will consume the rumours as a substitute for fact. The mass psychology of the investing community will be more heavily dictated by social media. Looking to the future, traders will rely on social media for trading matters more and more.
That sums up Friday’s highlights! Keep up with all the trading news for the day via Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.