Currencies
- The euro (EUR) rebounded from its yearly low at 1.3109 up to 1.3159 against the US dollar (USD). The single currency is on the bearish side as the European Central Bank (ECB) meets today and there is anticipation that Mario Draghi may announce further policy measures in order to support the European economy.
- The US dollar (USD) slid from its nine month high down to 104.73 against the Japanese yen (JPY). The yen erased some of its losses as the US ADP Non-Farm payrolls due at 12:15 GMT and expectations are at 218K added jobs. A better than expected figure may support the US economic growth and boost the expectations that the Fed may increase interest rates soon.
Equities
- The US indices hit new record highs before the retracement yesterday. There are a lot of signs of economic recovery in the US and investors are shifting towards more risky assets. Highlighting the major indices, with the US 500 (SPI) climbed up to 2010, the US 30 (DOW) rose up to 17150 and the US Tech (NDQ) increased up to 4113 before the drop back to 4062.
Commodities
- WTI Crude (OIL) rebounded from its low at 92.67 all the way up to 95.86 US dollars per barrel. The energy climbed ahead of the Crude Oil inventories release due at 15:00 GMT and with expectations of -0.9 Million Barrels held in inventory.
Mover & Shaker with forex options
- The British Pound (GBP) collapsed down to its eight month low at 1.6438 against the US dollar (USD). The cable lost more than 200 pips from the beginning of the weekly session as there are concerns over the Scottish independence that overshadowed the better than expected services PMI data.
- Option traders may consider constructing a Bear Put Spread on the GBPUSD and gain if the pair continues the downside, while the risk is limited to the premium paid.
- A Bear Put Spread can be constructed by buying an in the money Put while selling an out of the money PUT.
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EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.