Currencies
- The euro (EUR) rose from 1.3587 all the way up to 1.3622 against the US dollar (USD). The single currency advanced ahead of the FOMC meeting minutes and on speculation that the US economy remains uneven.
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The US dollar (USD) continues the downside against the Japanese yen (JPY) and dropped down to 101.44. Yen’s appreciation is driven by the weakness of the dollar and looking ahead the pair might move even lower.
Equities
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The global equities continues the downsize for another day as investors are looking for an alternative and safer investment. The France 40 (CAC) trades near its three month low after the Air France Group announced a cut on its yearly profit forecast.
Commodities
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WTI Crude (OIL) fell down to its monthly low at 103 US dollars per barrel, on speculation that crude oil inventories might come out higher than expectations. On the calendar, the US Crude Oil Inventories will be revealed at 14:30 at forecast is -1.7 million barrels.
Mover & Shaker with FX Options
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Gold (XAU) declined down to 1313 before the retracement up to 1324 US dollars an ounce. The precious metal rose as the equities fell and the greenback is under pressure across the board.
- Option traders may consider constructing a Long Straddle on the XAUUSD 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 Put and an at the money Call.
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Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.