Currencies
- The euro (EUR) extended its drop to a new two-year low at 1.2219 against the US dollar (USD) on Friday on speculations that the Federal Reserve will increase their interest rates as early as in Q2. Today the European Consumer Confidence will be announced and is expected to be at -11.
- The US dollar (USD) climbed to 119.61 on Friday against Japanese yen (JPY) as the Fed will probably hike their interest rates in the middle of next year. Today the US Existing Home Sales will be announced and are expecting to be at 5.21M.
Equities
- US equities had the second biggest weekly gain this year as Fed will probably rise the interest rates in the middle of next year, while US economy expanded by 3.9% this year. The US 500 (SPI) climbed to 2075, the US 30 (DOW) advanced to 17841 and the US Tech (NDQ) went to 4288.
Commodities
- WTI Crude (OIL) rebounded from 54.41 to 58.38 USD per barrel on Friday , as Saudi is confident that the demand for oil will rise, while some non-OPEC oil producers cut their output.
Mover & Shaker with forex options
- The US dollar (USD) skyrocketed up to 0.9848 against the Swiss Franc (CHF) and recorded its 2 year high. The franc declined after the Swiss National Bank (SNB) imposed negative interest rates yesterday.
- Option traders may consider buying a Call on USDCHF and gain if the pair continues the rally, 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.