Currencies
- The euro (EUR) remains range bound near its 8-month low against the US dollar (USD) at around 1.3458. The pair remains under pressure, ahead of the US Unemployment claims due at 12:30 GMT and better than expected figures might move the pair lower.
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The US dollar (USD) gained yesterday against the Japanese yen (JPY) with its high at 101.51. The pair might be volatile ahead of today’s announcements, with the US New home sales expected to be at 485K and tonight the yearly Tokyo Core CPI will be announced with expectations at 2.7%.
Equities
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China 50 (CNX) reached 3-month high at 7009 as China’s Manufacturing increased to its strongest reading for the last 18 months.
Commodities
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Natural Gas (NGS) continues its drop and reached its 10-month low at 3.740 USD per mmBTU. On the calendar, the Natural Gas Storage will be announced at 14:30 GMT while expectations are at 95B cubic feet held in the underground storage.
Mover & Shaker with FX Options
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New Zealand dollar (NZD) lost more than 130 pips yesterday and declined down to 0.8569 as the New Zealand’s central bank warned of the potential for a significant fall of the currency. Kiwi continues its bearish trend and is currently trading around 0.8580.
- Option traders may consider constructing a Back Spread Strategy with Puts on the NZDUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
- A Back Spread Strategy with Puts can be constructed by selling an at the money Put while buying an out of the money Put at double amount.
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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.
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