Currencies
- The euro (EUR) crashed yesterday to the lowest point in the last eight months at 1.3366 as the US GDP data came out better than expected at 4.0%, despite the bad US ADP Non-Farm Employment change. The single currency rebound towards 1.3395 after dovish Fed. Today the yearly European CPI Flash Estimate will be announced where it expected to be at 0.5%.
- The US dollar (USD) skyrocketed yesterday against the Japanese yen (JPY) while reaching a 3-month high at 103.08 after better US GDP. The greenback rose versus all 15 major currencies, consumer confidence improved and durable goods increased.
Equities
- Asian equities gained yesterday. The Japan 225 (NKI) advanced to 15762, the Hong Kong 40 (HSX) went to 24639, the China 50 (CNX) to 7259 and the India 50 (IND) to 7800.
Commodities
- WTI Crude (OIL) crashed yesterday towards 99.53 USD per barrel as gasoline stockpile rose and demand declined in the US.
Mover & Shaker with forex options
- The British Pound (GBP) fell yesterday against the US dollar (USD) as the US economy recovered faster than expected, speculating it will increase interest rates for first time since 2008.
- Option traders may consider constructing a Back Spread Strategy with Calls on the GBPUSD and gain if the pair moves higher, while the risk is limited to the premium paid.
- A Back Spread Strategy with Calls can be constructed by selling an at the money Calls while buying an out of the money Calls at double amount.
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Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.