Currencies
- The euro (EUR) climbed from 1.3601 up to 1.3646 yesterday against the US dollar (USD). The single currency reached a weekly high as FOMC Meeting minutes kept a dovish tone in a statement that was lacking of any large surprises.
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The US dollar (USD) advanced up to 101.85 before retracing back to 101.51 against the Japanese yen (JPY) after the FOMC Meeting minutes, as Fed didn’t show signs of increasing the interest rates earlier than expected. The US unemployment data will be announced at 12:30 GMT, with expectations at 316K unemployed individuals.
Equities
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European equities remain under pressure as, the Germany 30 (DAX) closed at 9823, the EU Stocks 50 (ESX) closed at 3206 and the France 40 (CAC) at 4364.
Commodities
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Corn (CRN) reached four 4-year low at 3.88 USD per bushel as the US which is the biggest exporter will boost global stockpiles.
Mover & Shaker with FX Options
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British Pound (GBP) rose up to 1.7166 against US dollar (USD) and is approaching near its 6-year high. The UK Official Bank Rate will be announced today, as UK is heading towards better economy.
- Option traders may consider constructing a Long Straddle on the GBPUSD 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
EUR/USD fluctuates in daily range above 1.0600
EUR/USD struggles to gather directional momentum and continues to fluctuate above 1.0600 on Tuesday. The modest improvement seen in risk mood limits the US Dollar's gains as investors await Fed Chairman Jerome Powell's speech.
GBP/USD stabilizes near 1.2450 ahead of Powell speech
GBP/USD holds steady at around 1.2450 after recovering from the multi-month low it touched near 1.2400 in the European morning. The USD struggles to gather strength after disappointing housing data. Market focus shifts to Fed Chairman Powell's appearance.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.