Currencies
- The euro (EUR) rose for four consecutive day against the US dollar (USD) at 1.2486 ahead of European Targeted LTRO. The European Central Bank (ECB) will decide the value of the money they will create and use them to loan the Eurozone banks. The monthly German and French Final CPI will be announced with expectations at 0% and 0.2% increase.
- The US dollar (USD) continued its bearish trend yesterday against Japanese yen (JPY) to 117.59. Yen earlier today was under pressure on speculations that Prime Minister Shinzo Abe’s Liberal Democratic Party will win the elections this weekend and continue with his monetary policy measurements that resulted into yen drop. Today the US monthly Retail Sales will be announced with expectations of rising by 0.4%.
Equities
- US equities fell as energy prices continue to drop, resulting into energy shares selloff. The US 500 (SPI) crashed to 2023, the US 30 (DOW) went to 17497 and the US Tech (NDQ) to 4219.
Commodities
- WTI Crude (OIL) extended its drop to 60.43 USD per barrel as Kuwait offered a discount to Asian customers and Saudi Arabia are resisting of cutting output. The US Crude Oil Inventories expanded their stockpile to 1.5M barrels.
Mover & Shaker with forex options
- The New Zealand’s dollar (NZD) rose to 0.7869 against the US dollar (USD) as the Reserve Bank of New Zealand said that additional interest rate hike might needed even as it will drop inflation. Today the US Unemployment Claims will be announced with expectations at 299K.
- Option traders may consider buying a Call on the NZDUSD and gain if the pair moves higher, while the risk is limited to the premium paid.
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