Currencies
- The euro (EUR) advanced by 100 pips yesterday and is now trading around 1.2520 against the US dollar (USD). The German ZWE economic sentiment came out much better than expected and helped the currency to gain back some of its losses. The FOMC meeting minutes are due tonight at 19:00 GMT and a hawkish statement may push the pair higher.
- The US dollar (USD) recorded a new 7-year high at 117.41 against the Japanese yen (JPY). The yen continues the bearish momentum as Japan’s Prime Minister, Shinzo Abe, postponed a sales-tax increase and called for early elections.
Equities
- The Japan 225 (NKI) rebounded from 16914 all the way up to 17510 and is near its record high, as Shinzo Abe called for early elections.
Commodities
- WTI Crude (OIL) collapsed from 76.43 all the way down to 74.06 US dollars per barrel. The energy declined on speculation that OPEC may refuse a reduction of the production. Crude oil Inventories are on the calendar and due at 15:30 GMT with expectations at -0.7 Million Barrels.
Mover & Shaker with forex options
- The British Pound (GBP) slid below 1.5600 against the US dollar (USD), and trades near its yearly low. The cable remains under pressure as the inflation remains at a record low and it is anticipated that the BoE may delay to hike interest rates. On the calendar, we have the BoE MPC Meeting minutes, where the members vote for increase or decrease of the interest rates.
- Option traders may consider buying a Put on the GBPUSD and gain if the pair continues the downside, while the risk is limited to the premium paid.
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Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'