Currencies
- The euro (EUR) crashed yesterday while it reached its 8-month low against the US dollar (USD) at 1.3458. The single currency dropped after the yearly US CPI announcement which was near the target inflation that Fed set. This means that Fed might increase interest rates earlier than expected.
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The US dollar (USD) climbed towards 101.59 against the Japanese yen (JPY). The monthly US CPI and the US Existing Home Sales were near expectations, as US might be the first country raising interest rates.
Equities
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US equities gained yesterday. The US 500 (SPI) advanced to 1980, the US 30 (DOW) went to 17067 and the US Tech (NDQ) to 3958.
Commodities
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WTI Crude (OIL) fell yesterday to 101.80 USD per barrel after industry report showed gasoline supplies expanded in the US. Today the Crude Oil Inventories will be announced with expectations at -2.1M barrels held in inventory.
Mover & Shaker with FX Options
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Gold (XAU) remains range bound and is now trading near 1306 US dollars an ounce. Gold skyrocketed after the yearly US CPI from 1301 all the way up to 1315 before retracing back where is now trading.
- 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
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.