Currencies
- The euro (EUR) continued its drop against the US dollar (USD) and reached its new low at 1.3807. The single currency fell as Mario Draghi stated during the weekend that the appreciation of the euro may indicate further monetary stimulus.
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Gold (XAU) collapsed from its three week high at 1331 down to 1289 US dollars an ounce. The precious metal looks driven by the US economic data and also by the situation in Ukraine.
Equities
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The European stocks fell as Russian troops entered into Ukraine. The EU Stocks 50 (ESX) fell from 3080 down to 3011 and France 40 (CAC) dropped from 4401 down to 4263.
Commodities
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The WTI Crude (OIL) rebounded from its weekly low at 102.93 up to 104.02 US dollars per barrel. The energy rose as the US Crude Oil Inventories are due to release at 14:30 GMT with forecasts of only 1.3 Million barrels held in inventory.
Mover & Shaker with FX Options
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The US dollar (USD) made a rally yesterday and rose almost 80 pips against the Japanese yen (JPY). The US dollar erased part of previous week’s losses and climbed from 101.49 all the way up to 102.25, as the tensions in Ukraine are escalating and investors are shifting towards haven assets.
- Options traders may consider constructing a Bull Call Spread on USDJPY as the pair may continue its rally.
- 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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.