Currencies
- The euro (EUR) rebounded from is low at 1.3789 up to 1.3850 against the US dollar (USD). The euro erased part of its losses as the Fed chair, Janet Yellen, stated yesterday that Fed has a commitment to support the US economy.
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The British Pound (GBP) skyrocketed almost 120 pips and climbed up to its four year high at 1.6836 against the US dollar (USD). The sterling made a rally yesterday after the UK unemployment rate fell down to 6.9%, far below the expectations of 7.2%.
Equities
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The European stocks rallied as companies reported their financial results and the EU Stocks 50 (ESX) rose from yesterday’s low at 3009 all the way up to 3091.
Commodities
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Natural Gas (NGS) swing between gains and losses and is now trading around 4.550 US dollars per mmBTU. The energy is under pressure as the Energy Information Administration will release its weekly Natural Gas Storage report at 14:30 GMT and forecasts show 35 Billion held in the underground storage during last week.
Mover & Shaker with FX Options
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The US dollar (USD) increased sharply from 1.0958 all the way up to 1.1032 against the Canadian dollar (USD). The loonie depreciated after the Bank of Canada (BoC) press conference, which was dovish and signalled slow growth on exports.
- The monthly Canadian CPI due at 12:30 GMT and options traders may consider constructing a Bull Call Spread on USDCAD as the pair may continue its upside.
- A bull call spread can be constructed by purchasing an at-the-money Call and selling an out-of-the-money Call.
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Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.