Currencies
- The euro (EUR) continues its bearish trend against the US dollar (USD) and it touched its lowest point since September 2013 at 1.3152, as European inflation data will come out tomorrow. The single currency is falling as investors believe that the inflation data will be worse than expected as the latest economic data were disappointing for the Eurozone and the European Central Bank (ECB) may add more stimulus measurements.
- The US dollar (USD) it climbed from 103.74 up to 104.16 against the Japanese yen (JPY) and is now trading around 104.00. The Japanese yen is under pressure as the US quarterly GDP will come out tomorrow.
Equities
- US equities gained yesterday as the US economy recovers faster, with the US 500 (SPI) passed for first time the level of 2000, while the US 30 (DOW) recorded new high at 17129 and US Tech (NDQ) near its all-time high at 4075.
Commodities
- Sugar (SGR) rose yesterday from 15.29 up to 15.72 USD cents per pound, after the continuous bearish trend over the last two month. Demand for Sugar needs to exceed supply by 3 million tons before prices will raise significantly.
Mover & Shaker with forex options
- Gold (XAU) rose up to 1290 before it retraced back to 1280 yesterday against the US dollar (USD), as the talks between Russia and Ukraine were positive and the tensions in Middle East eased.
- Option traders may consider constructing a Straddle on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Straddle can be constructed by buying an at the money Put and Call.
Recommended Content
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.