Currencies
- The euro (EUR) climbed from its 11 month low at 1.3152 all the way up to 1.3216 against the US dollar (USD). The single currency rebounded on speculation the European Central Bank (ECB) may not add more stimulus measures in next week’s meetings.
- The US dollar (USD) declined around 50 pips reaching its weekly low at 103.69 against the Japanese yen (JPY). The pair retraced ahead of quarterly US GDP and Monthly US Home sales announcements with expectations at 3.9% and 0.6% respectively. Any negative figures coming out may push the pair even lower.
Equities
- The European equities continues to rally with the Germany 30 (DAX) rose up to 9600, France 40 (CAC) went up to 4401 and UK 100 (FTS) climbed up to 6827.
Commodities
- Natural Gas (NGS) range bound at around 3.990 US Dollars per mmBTU, as the Energy Information Administration will announce the energy’s storage held underground at 14:30 GMT and with expectations of 79 Billion cubic feet.
Mover & Shaker with forex options
- The Australian dollar (AUD) skyrocketed more than 100 pips and reached its three week high at 0.9370 against the US dollar (USD). The aussie rose after a report showed that business expenditure climbed surprisingly.
- Option traders may consider constructing a Bull Call Spread on the AUDUSD and gain if the pair continues the upside, while the risk is limited to the premium paid.
- A Bull Call Spread can be constructed by buying an in the money Call while selling out an out of the money Call.
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Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.