Currencies
- The euro (EUR) rose against the US dollar (USD) towards 1.3640, gaining in strength three days before the European Central Bank’s (ECB) Press Conference and the US Non-Farm Payrolls (NFP) release as Draghi’s might further unravel the ECB’s plans to ease Eurozone policy.
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The US dollar (USD) reached a six-week low against the Japanese yen (JPY). The yen climbed to its highest level this month as the tensions in Iraq and Ukraine as well as North Korea’s launching of missiles yesterday increased demand for safe haven assets. The pair is currently trading at 101.28 while today the monthly US Pending Home Sales may move the dollar.
Equities
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India 50 (IND) rose in the morning towards 7621 even as other Asian markets remain downbeat. The nifty has been trending around all-time highs since the election of Narendra Modi as India’s premier.
Commodities
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Wheat (WHT) continues its bearish trend towards 590.38 USD cents per bushel as predictions for sufficient global supplies drove the largest fall in prices since 2011.
Mover & Shaker with FX Options
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The British Pound (GBP) remains range bound around 1.7030 rear its 5-year high against the US dollar (USD). The Bank of England’s new measures over the housing market could further increase demand for pair, especially should the dollar continue its bearish trajectory.
- 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 Call, while buying an out of the money Call at double the amount.
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Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.