Currencies
- The euro (EUR) declined down to 1.2815 against the US dollar (USD) while its resistance lies at 1.2870. Mario Draghi stated yesterday that the ECB will control closely the balance sheet in order to prevent deflation. The European Flash Services PMI are due at 08:00 GMT and expectations are at 53.2.
- The US dollar (USD) climbed up to 38.8350 against the Russian Rouble (RUB). The rouble fell to record low as the Oil prices are falling and on prospects that Fed may raise interest rates in the near term. The two events have a direct impact on the currency.
Equities
- The US 100 (FTS) dropped down to its monthly low at 6731, as Tesco reported 250 Million Pounds overstated profits in its first half reports.
Commodities
- Soybeans (SOY) tumbled down to its 4-year low at 930 US dollars per bushel, as investors are sceptical due to low demand from China.
Mover & Shaker with forex options
- Gold (XAU) rebounded from its 8-month low at 1208 up to 1220 US dollars an ounce. The precious metal is fragile as investors are weighting the recovering of the global economy and the demand for the safety haven.
- The metal remains bearish, thus Option traders may consider buying a PUT on XAUUSD and gain if the pair continues its momentum, while the risk is limited to the premium paid.
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Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.