Currencies
- The euro (EUR) commenced this week’s trading with a drop to 1.2665, recording a new 23-month low, against the US dollar (USD). The single currency remains under pressure as the German monthly Preliminary CPI will be announced today and is expected to drop by 0.1%.
- The US dollar (USD) reached a new six-year high against the Japanese yen (JPY) at 109.65 earlier in the morning. The greenback carries on strengthening as US economy seems to recovering faster. Today, the monthly US Pending Home Sales will be announced and they are expected to drop by 0.4%.
Equities
- US equities dropped on Friday as investors snapped up profits before third quarter closes. The US 500 (SPI) fell to 1970; the US 30 (DOW) went to 16983 and the US Tech (NDQ) to 4037.
Commodities
- WTI Crude (OIL) fell to 92.94, as concern about the oil supply because of Middle-East trouble eased.
Mover & Shaker with forex options
- Euro (EUR) appeared range bound around its lowest point since July 2014 against British pound (GBP). Pound strengthened as Carney stated that a rise in UK interest rates is getting closer. Today, the number of new UK Mortgage Approvals will be announced with expectations at 66K.
- Option traders may consider buying a Put on the EURGBPand gain if the pair moves lower, 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.