Currencies
- The euro (EUR) advanced by 100 pips yesterday and is now trading around 1.2520 against the US dollar (USD). The German ZWE economic sentiment came out much better than expected and helped the currency to gain back some of its losses. The FOMC meeting minutes are due tonight at 19:00 GMT and a hawkish statement may push the pair higher.
- The US dollar (USD) recorded a new 7-year high at 117.41 against the Japanese yen (JPY). The yen continues the bearish momentum as Japan’s Prime Minister, Shinzo Abe, postponed a sales-tax increase and called for early elections.
Equities
- The Japan 225 (NKI) rebounded from 16914 all the way up to 17510 and is near its record high, as Shinzo Abe called for early elections.
Commodities
- WTI Crude (OIL) collapsed from 76.43 all the way down to 74.06 US dollars per barrel. The energy declined on speculation that OPEC may refuse a reduction of the production. Crude oil Inventories are on the calendar and due at 15:30 GMT with expectations at -0.7 Million Barrels.
Mover & Shaker with forex options
- The British Pound (GBP) slid below 1.5600 against the US dollar (USD), and trades near its yearly low. The cable remains under pressure as the inflation remains at a record low and it is anticipated that the BoE may delay to hike interest rates. On the calendar, we have the BoE MPC Meeting minutes, where the members vote for increase or decrease of the interest rates.
- Option traders may consider buying a Put on the GBPUSD and gain if the pair continues the downside, while the risk is limited to the premium paid.
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EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.