Currencies
- The euro (EUR) reached a new at 1.3113 against the US dollar (USD). The single currency remains under pressure and formed its new resistance at 1.3145, while is now trading at around 1.3120.
- The US dollar (USD) started its weekly session at 104.15 and climbed up to 104.86 against the Japanese yen (JPY). The pair reached a nine month low on speculation that Japan may reform its pension funds.
Equities
- The Asian indices advanced, with the Indian 50 (IND) recording a new record high at 8090, the China 50 (CNX) is trading around 7210 and Japan 225 (NKI) is near 15700.
Commodities
- Corn (CRN) fell from its weekly high at 369 down to 361 US dollars per bushel, as there is increased demand from US while supplies from the Black Sea may be interrupted due to the tensions in Ukraine.
Mover & Shaker with forex options
- The Australian dollar (AUD) slid around 70 pips and reached its low at 0.9284 against the US dollar (USD). The aussie dollar declined after the Reserve Bank of Australia (RBA) kept its interest rates at 2.5%, at their record low. In addition, the RBA governor, Glenn Stevens, stated that an overvalued currency hurts the economy.
- Option traders may consider constructing a Long Straddle on the AUDUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle can be constructed by buying an at the money Call and Put.
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Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'