Currencies
- The euro (EUR) crashed yesterday against the US dollar (USD) at 1.3245, the lowest point since September. Today the European Manufacturing and Services PMI will be announced and are expected to be at 51.4 and 53.6.
- The US dollar (USD) continues its bullish trend against the Japanese yen (JPY) to 103.873. The dollar was the strongest currency yesterday as at the FOMC Meeting Minutes the Fed officials said that the Job gains might bring the interest rates rise faster, but the labour market needs to improve. Today the US Unemployment claims will be announced and are expected at 302K.
Equities
- The US equities rose yesterday as the Fed officials said during the FOMC that the Job gains might help the interest rates to rise faster. The US 500 (SPI) advanced to 1983, the US 30 (DOW) climbed to 16946 and the US Tech (NDQ) went to 4037.
Commodities
- Gold (XAU) fell from 1297 to 1275 as investors expect a stronger dollar after a potential rate hike from the Federal Reserve coming sooner than initially thought.
Mover & Shaker with forex options
- The British Pound (GBP) continues its bearish trend against the USD dollar (USD) at 1.6567. The cable rose on the Monetary Policy Committee Official Bank Rate Vote as there were two positive votes on increasing the interest rates, before dropping to its 4-month low on the release of FOMC.
- Option traders may consider constructing a Back Spread Strategy with Puts on the GBPUSD 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 consolidates recovery below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery but remains below 1.0700 in early Europe on Thursday. The US Dollar holds its corrective decline amid a stabilizing market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD advances toward 1.2500 on weaker US Dollar
GBP/USD is extending recovery gains toward 1.2500 in the European morning on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.