Currencies
- The euro (EUR) hit a weekly high at 1.3597 against the US dollar (USD) and is now trading around 1.3562. The Europe crawls to get out of the debt crisis while the US is threatening by a possible default.
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The US dollar (USD) climbed to a two week high at 98.70 versus the Japanese yen (JPY). The pair made a rally, while the US senate leaders are trying to reach to an agreement before Thursday.
Equities
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US equities continues to rise for a second day on speculation that the US lawmakers could reach a deal before Thursday. The US 500 (SPI) rose from 1680 all the way up to 1709. It looks that the index may continue to rise as the days ahead are crucial.
Commodities
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Crude Oil (WTI) swings between gains and losses and is trading between the levels of 101.00 and 102.50. All eyes are on the US government shutdown and a possible solution may pave the way towards higher levels.
Mover & Shaker with FX Options
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The Australian dollar (AUD) skyrocketed more than 130 pips, climbing up to 0.9538 against the US dollar (USD) and touched its highest level since June. The Reserve Bank of Australia (RBA) released the monetary policy meetings today, signalling the intention not to reduce interest rates further.
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Option traders may benefit from this move by purchasing at-the-money CALLs on AUDUSD, with risk limited to the premium paid in the event we see a reversal of the bullish trend .
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EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.