Currencies
- The euro (EUR) dropped to 1.3368 against the US dollar (USD). The single currency is edging towards its lowest level since November 2013. Today the German ZEW Economic Sentiment survey data will be announced and is expected to come out at 18.2.
- The US dollar (USD) continues its bullish trend for a second consecutive day against the Japanese yen (JPY) at 102.27. The yen fell as tensions eased in Ukraine, reducing the demand for the currency as a safety haven. The yen is under pressure today as the quarterly Japanese Preliminary GDP data will be announced and are expected at -1.7%.
Equities
- The European equities gained yesterday as investors believe that the tensions between Russia and Ukraine will ease and that the US airstrikes might push the ISIS forces back. The Germany 30 (DAX) advanced to 9199, the France 40 (CAC) went to 4205 and the EU Stocks 50 (ESX) to 3052.
Commodities
- WTI Crude (OIL) gained for a fourth consecutive day to 97.84 USD per barrel, before Crude Oil Inventories are announced later today.
Mover & Shaker with forex options
- The British Pound (GBP) rose to 1.6794 against the USD dollar (USD) before retracing back to 1.6762 earlier this morning. The Pound fell to a two month low even as investors expect the central bank to be the first to raise rates.
- Option traders may consider constructing a Back Spread Strategy with Calls on the GBPUSD and gain if the pair moves higher, while the risk is limited to the premium paid.
- A Back Spread Strategy with Calls can be constructed by selling an at the money Call while buying an out of the money Call at double amount.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to hold above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.