Currencies
- The euro (EUR) climbed from 1.2730 all the way up to 1.2824 against the US dollar (USD). The euro gained momentum as investors anticipate that the Fed may delay increase the interest rates due to slow global recovery.
- The US dollar (USD) slid from its high at 107.38 down to 106.24 against the Japanese yen (JPY). The yen rose as Asian stocks declined and investors are shifting towards safer assets.
Equities
- Asian equities fell yesterday as market participants are weighting the slow Chinese economic data and the US corporate earnings. The Japan 255 (NKI) slid from 15208 down to 14787 while the China 50 (CNX) is now trading around 7160.
Commodities
- Corn (CRN) rebounded from its four year low at 341 up to 349 US dollars per Bushel as dry weather may reduce the supply of the commodity.
Mover & Shaker with forex options
- Gold (XAU) continues its rally and skyrocketed from 1234 up to 1250 US dollars an ounce since yesterday The precious metal headed for gains as market participants assess the recovery of the global economy along with the timing of rising interest rates in US.
- Option traders may consider purchasing a CALL on XAUUSD and gain if the pair continues the upside, while the risk is limited to the premium paid.
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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.
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