Currencies
- The euro (EUR) climbed from 1.2730 to 1.2630 yesterday against the US dollar (USD) The investors and analysts in Germany are pessimism about the future economy as the Germany ZEW Economy Sentiment came out to be at -3.6, while expectations were at 0.2. The European Industrial Production were also worse than expected as it drop by -1.8%, while the expectations were to drop by -1.5%. Today the President of European Central Bank Mario Draghi will speak at the European Cultural Days 2014 in Frankfurt and might reveal some hints about any additional future stimulus measurements.
- The US dollar (USD) climbed to 12-months high at 40.9632 against the Russian Ruble (RUB) as inflation data came out to be at 1.2% increase, while the expectations were at 1.4% increase. Today the UK 3-month Average Earnings Index will be announced along with Claimant Count Change, with expectations at 0.7% and -34.2K respectively.
Equities
- Asian equities gained, following disappointing European economic data. The Japan 225 (NKI) advanced to 15082, the Hong Kong 50 (HSX) rose to 23110, the China 50 (CNX) went to 7154 and the India 50 (IND) to 7945.
Commodities
- WTI Crude (OIL) plunges to a two year low at 81.32 USD per barrel as the demand for oil is in its slowest pace in five years.
Mover & Shaker with forex options
- British pound (GBP) crashed to 1.5888 yesterday against the US dollar (USD) as inflation data came out to be at 1.2% increase, while the expectations were at 1.4% increase. Today the UK 3-month Average Earnings Index will be announced along with Claimant Count Change, with expectations at 0.7% and -34.2K respectively.
- Option traders may consider buying a Put on the GBPUSD and 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.