Currencies
- The euro (EUR) dropped to a new 14-month low, from 1.2950 to 1.2880, against the US dollar (USD), despite the positive data from the German Trade Balance which were better than expected at 22.2 billion while expectations were at 17.3 billion. The pair still remains under pressure after the European Central Bank (ECB) cut the interest rates from 0.15% to 0.05% unexpectedly.
- The US dollar (USD) rose to its highest level since October 2008 earlier today against the Japanese yen (JPY) at 106.33. The greenback strengthened as investors speculate on improved figures of Unemployment Claims and Retail Sales that are due this week.
Equities
- US equities dropped yesterday. The US 500 (SPI) moved to 1997, the US 30 (DOW) went to 17074 and the US Tech (NDQ) to 4085.
Commodities
- WTI Crude (OIL) dropped to a 9-month low yesterday at 91.80 USD per barrel, before rebounding back to 92.80 due to low demand.
Mover & Shaker with forex options
- The British Pound (GBP) continued its bearish trend against the US dollar (USD) and is currently trading at its lowest point since November 2013 at 1.6077. Today the UK monthly Manufacturing Production will be released and it is expected to rise by 0.3%, while the governor of the Bank of England will be speaking in Liverpool about the UK economy’s future.
- Option traders may consider constructing a Back Spread Strategy with Puts on the GBPUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
- A Back Spread Strategy with Puts can be constructed by selling an at the money Puts while buying an out of the money Puts at double amount.
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Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.