Currencies
- The euro (EUR) opened 40 pips lower against the US dollar (USD) this weekly trading session and is now trading around the level of 1.3850. The president of the ECB, Mario Draghi, stated in the weekend meetings that the strength of euro indicates further monetary stimulus.
- The Canadian dollar (CAD) rebounded from its three month low at 1.0856 all the way up to 1.0991 against the US dollar (USD) during the last week. The loonie completed its rally and looking ahead on the calendar the monthly US Retail Sales will be released at 12:30 GMT.
Equities
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The US stocks moved lower with the US 30 (DOW) dropped down to 15858 and the US 500 (SPI) down to its two month low at 1802.
Commodities
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Wheat (WHT) skyrocketed from its low at 656.20 all the way up to 674.14 US dollars per bushel. The commodity rose due to the tensions in Ukraine spur concern that the supply may be disrupted
Mover & Shaker with FX Options
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Gold (XAU) rose almost 100 pips from the opening of the Asian session and climbed up to 1328 US dollar an ounce. The precious metal remains bullish on speculation that the Fed may taper with a slower pace than anticipated and the tensions in Ukraine boost demand for haven assets.
- Gold may continue its bullish momentum in the near term and options traders may consider constructing a Bull Call Spread on XAUUSD.
- A bull call spread can be constructed by purchasing an at-the-money Call and selling an out-of-the-money Call.
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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
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