Gold, crude oil prices rise as fear enters S&P 500
Gold hits all-time high near $2,300
Crude oil price hits $85 for first time since October
WTI crude oil futures have surpassed $85 in recent trade, hitting a 6-month high. Trends on both the supply and demand side could be sending the commodity to such highs. Supply fears have grown in recent weeks, with rising tensions affecting the ongoing geopolitical conflicts in Russia and the Middle east - both top regions for oil production. Rising demand may be an additional factor as forecasts in usage rates spike in global economies like the US and China.
S&P 500 price falls 1%
S&P 500 index fell approximately 1% in recent trade; SPX still above $5,200. This slight downturn in the S&P 500, a broad measure of US equities, might signal caution among investors. However, the index remaining above $5,200 indicates a generally positive outlook on the health of large-cap U.S. companies. Movements in the S&P 500 are often seen as indicators of the broader market sentiment, impacting both equity and other financial markets.
Stock fear enters market
S&P 500 Implied Volatility index - VIX - rose more than 7% nearing 15.00. The VIX, often referred to as the "fear gauge," measures the stock market's expectation of volatility based on S&P 500 index options. A rise in the VIX indicates that traders expect significant movements in the S&P 500, suggesting increased uncertainty or fear in the market. This could lead investors to adopt more defensive strategies, impacting trading across various asset classes.
US dollar approaching fresh highs in major forex pairs
Dollar strength continues to start April with major pairs reaching key price levels. Notably, EUR/USD under 1.0800, GBP/USD nearing 1.2500, and USD/JPY nearing 152.00. While historically inversely correlated with assets like gold and crude oil (priced in USD), this strength underscores the dollar's role as a global reserve currency, often sought after in times of market uncertainty.
How to trade US dollar
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
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