Currencies
- The euro (EUR) dropped against the US dollar (USD) to 1.3525. The single currency is under pressure as today the yearly EU CPI will be announced while expectations lie at 0.5%.
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The US dollar (USD) fell towards 101.51 against the Japanese yen (JPY). The US Unemployment and Philly Fed Manufacturing Index is coming ahead with expectations of 310K and 15.6 respectively.
Equities
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European equities advanced yesterday. The GER 30 (DAX) went to 9862, the EUStocks 50 (ESX) to 3201 and the France 40 (CAC) to 4368.
Commodities
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Palladium (XPD) is edging higher while it reached a 13-year high at 876.70 as demand for the safe haven increases.
Mover & Shaker with FX Options
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Gold (XAU) rose to 1300 as the demand of the precious metal in China and India, the largest consumers in the world, increased because of the lower price.
- Option traders may consider constructing a Back Spread Strategy with Calls on the XAUUSD 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 amount.
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Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.