Currencies
- The euro (EUR) gained more than 50 pips and climbed up to 1.3748 against the US dollar (USD). The euro rose as the policy makers of the European Central Bank (ECB) alleged that they control any risk of deflation.
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The US dollar (USD) dropped for another day down to 102.73 against the Japanese yen (JPY) and recorded its two week low. Yen appreciated as the Bank of Japan (BoJ) refrained from adding more stimulus measures at the policy meeting today.
Equities
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The China 50 (CNX) skyrocketed from 6677 all the way up to 6943 during the Asian session. The Chinese index rose on speculation that the government will take any necessary steps in order to support economic growth.
Commodities
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Soybeans (SOY) declined from 1479 down to 1459 before rebounding back to 1471 bushels. Soybeans swing between losses and gains as the US Department of Agriculture (USDA) will report tomorrow the global inventories.
Mover & Shaker with FX Options
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The British Pound (GBP) advanced more than 100 pips during yesterday’s session against the US dollar (USD). The monthly UK manufacturing production is on the calendar for today and expectations show a change of 0.3%. A higher outcome may drive the pair even higher.
- Options traders may consider constructing a Bull Call Spread on GBPUSD.
- A bull call spread can be constructed by purchasing an at-the-money Call and selling an out-of-the-money Call.
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Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.