Currencies
- The euro (EUR) reached its one year low at 1.3118 against the US dollar (USD). The single currency remains under pressure as he US Economy shows signs of recovering. The European Manufacturing PMI are on the calendar with expectations at 50.8.
- Gold (XAU) declined from its high at 1296 down to 1283 US dollars per troy ounce on Friday. There are a lot of talks regarding Ukraine, thus the precious metal remains fragile while the metal is now trading around the level of 1287.
Equities
- The European Indices advanced on Friday with the Germany 30 (DAX) rose up to 9470, the France 40 (CAC) increased from 4335 up to 4388 and UK 100 (FTS) climbed from 6776 to 6823.
Commodities
- WTI Crude (OIL) completed its rally and climbed up to 95.98 US dollars per barrel. There is a demand for the energy as the US economy is growing, which is the biggest worldwide consumer.
Mover & Shaker with forex options
- The British Pound (GBP) dropped from its weekly high at 1.6612 back to 1.6561 before the rebound back to 1.6594 against the US Dollar (USD) on Friday. The sterling is very volatile as the UK Manufacturing PMI, due at 08:30 GMT, may set a new direction for the pair.
- Option traders may consider constructing a Long Straddle on the GBPUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle can be constructed by buying an at the money Call and Put.
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Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.