Currencies
- The euro (EUR) fell to 1.3825 from 1.3919 during yesterday’s FOMC statement. As QE tapering continues for the third month, Fed Chairman Janet Yellen stated that a potential rate hike may be possible by next year.
-
The US dollar (USD) spiked higher on Yellen’s rate hike comments against the Japanese yen (JPY). The pair has moved from 101.50 to above 102.63 last night while it has remained above the 102.20 level in today’s early trading.
Equities
-
The UK 100 (FTS) index reflected US exchanges when it fell on FOMC comments of rising interest rates. The UK benchmark fell to 6463 before correcting to 6486 on yesterday’s close.
Commodities
-
WTI crude (OIL) continues its rally bushing above 99.45 dollars per barrel. Energy prices are tested this week after Russia’s annexation of the Crimea as global energy dependencies are revaluated.
Mover & Shaker with FX Options
-
As expected Gold (XAU) continued to slide since the beginning of the week. The precious metal came under further pressure from yesterday’s FOMC meeting touching 1326 before correcting to 1330 overnight. The precious metal has lost more than sixty dollars over the past week.
- Options traders may consider constructing a Bear Put Spread.
- A bear put spread can be constructed by purchasing an at-the-money Put and selling an out-of-the-money Put.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.