Currencies
- The euro (EUR) managed to break its previous resistance and climbed up to 1.2569 against the US dollar (USD). The euro advanced ahead of the FOMC statement due today at 19:00 GMT as investors are watching for signals from the Fed of rising interest rates.
- The US dollar (USD) continues the decline as drops down to 115.55 against the Japanese yen (JPY). The yen continues to rise as investors are shifting towards safer assets due to the substantial slump of oil prices and after Shinzo Abe election.
Equities
- The US equities collapsed as there are concerns about global economic growth. The US 500 (SPI) declined down to 1969, the US 30 (DOW) dropped from 17429 to 17050 and the US Tech (NDQ) fell to 4083.
Commodities
- WTI Crude (OIL) continues the downside as it reached a new 5-year low at 53.58 US dollars per barrel, as Russia stated that won’t cut production next year. Crude Oil inventories are on the calendar and expectations show -2.6 Million barrels held in inventories.
Mover & Shaker with forex options
- Gold (XAU) skyrocketed up to 1223 before the retracement down to 1187 US dollars an ounce, during yesterday’s session. The metal slid on speculation that Russia may sell its gold reserves and we may see a hike on US interest rates in due course.
- Option traders may consider buying a Put on the XAUUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
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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.
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Week ahead – US GDP and BoJ decision on top of next week’s agenda
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