Currencies
- The euro (EUR) rose from 1.2858 to 1.2940 against the US dollar (USD). The single currency recorded its biggest gain since July after hitting a new 14-month low. Today the French monthly Industrial Production will be announced with expectations to drop by 0.4%.
- The US dollar (USD) rose to a new 6-year high against the Japanese yen (JPY) at 106.45. The Japanese yen fell as the monthly Core Machinery Orders were worse than expected at 3.5% while the expectations were at 4.1%.
Equities
- US equities fell yesterday while US Tech (NDQ) rose near its all-time high at 4110, as Apple revealed their new products, before retraced back to 4052. The US 500 (SPI) dropped to 1983 and the US 30 (DOW) went to 16983.
Commodities
- Gold (XAU) fell to a three-month low yesterday at 1247 as investors seek for riskier assets rather than the safe haven.
Mover & Shaker with forex options
- The Australian Dollar (AUD) crashed against the US dollar (USD) to 0.9159, as it dropped below the 200-day moving average while the NAB Business Confidence dropped from 10 to 8. Aussie is still under pressure as the Australian Unemployment Rate and the Employment change will be announced with expectations lying at 6.3% and 15.2K new jobs.
- Option traders may consider constructing a Back Spread Strategy with Puts on the AUDUSD 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 Puts while buying an out of the money Puts at double amount.
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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.