Currencies
- The euro (EUR) has broker lower from yesterday’s high of 1.3851 against the dollar. The single currency is moving just above 1.3820 in early trading with short term support at 1.3787.
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The US dollar (USD) continues to retrace against the Japanese yen (JPY). The greenback has fallen below 102.31 while resistance still lies just above 102.70.
Equities
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Chinese stocks reversed a five day fall in values. The drop was sparked by a contraction in manufacturing data and caused the China 50 (CNX) index to fall from 6906 to 6671 over the week. The index is currently trading just above 6789.
Commodities
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Sugar (SGR) prices are on the rise as the commodity spiked above 17.40 cents per pound. The increase in prices was triggered by expectations of low supply as Brazil’s Centre South region will see production by 5.2% as crops were affected by recent droughts.
Mover & Shaker with FX Options
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Gold (XAU) remains on a bearish trajectory as it has lost more than 50 dollars during April. The precious metal is trading just below 1285.23 dollar per ounce.
- In the medium term, gold may continue its bearish trend and options traders may consider constructing a Bear Put Spread on XAUUSD.
- A bear put spread can be constructed by purchasing an at-the-money Put and selling an out-of-the-money Put.
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Editors’ Picks
EUR/USD holds above 1.0700 after German inflation data
EUR/USD trades modestly higher on the day above 1.0700. The data from Germany showed that the annual HICP inflation edged higher to 2.4% in April. This reading came in above the market expectation of 2.3% and helped the Euro hold its ground.
USD/JPY recovers above 156.00 following suspected intervention
USD/JPY recovers ground and trades above 156.00 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
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