Currencies
- The euro (EUR) rose against the US dollar (USD) towards 1.3640, gaining in strength three days before the European Central Bank’s (ECB) Press Conference and the US Non-Farm Payrolls (NFP) release as Draghi’s might further unravel the ECB’s plans to ease Eurozone policy.
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The US dollar (USD) reached a six-week low against the Japanese yen (JPY). The yen climbed to its highest level this month as the tensions in Iraq and Ukraine as well as North Korea’s launching of missiles yesterday increased demand for safe haven assets. The pair is currently trading at 101.28 while today the monthly US Pending Home Sales may move the dollar.
Equities
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India 50 (IND) rose in the morning towards 7621 even as other Asian markets remain downbeat. The nifty has been trending around all-time highs since the election of Narendra Modi as India’s premier.
Commodities
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Wheat (WHT) continues its bearish trend towards 590.38 USD cents per bushel as predictions for sufficient global supplies drove the largest fall in prices since 2011.
Mover & Shaker with FX Options
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The British Pound (GBP) remains range bound around 1.7030 rear its 5-year high against the US dollar (USD). The Bank of England’s new measures over the housing market could further increase demand for pair, especially should the dollar continue its bearish trajectory.
- Option traders may consider constructing a Back Spread Strategy with Calls on the GBPUSD and gain if the pair moves higher, while the risk is limited to the premium paid.
- A Back Spread Strategy with Calls can be constructed by selling an at the money Call, while buying an out of the money Call at double the amount.
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Editors’ Picks
EUR/USD holds above 1.0700 ahead of US jobs report
EUR/USD stays in a consolidation phase above 1.0700 after closing the previous two days in positive territory. Investors eagerly await April jobs report from the US, which will include Nonfarm Payrolls and Unemployment Rate readings.
GBP/USD advances to 1.2550, all eyes on US NFP data
The GBP/USD pair trades on a stronger note around 1.2550 amid the softer US Dollar on Friday. Market participants refrain from taking large positions as focus shifts to April Nonfarm Payrolls and ISM Services PMI data from the US.
Gold remains stuck near $2,300 ahead of US NFP
Gold price struggles to gain any meaningful traction and trades in a tight channel near $2,300. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support to XAU/USD ahead of the key US NFP data.
XRP edges up after week-long decline as Ripple files letter in reply to SEC’s motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
US NFP Forecast: Nonfarm Payrolls gains expected to cool in April
The NFP report is expected to show that the US economy added 243,000 jobs last month, sharply lower than the 303,000 job creation seen in March. The Unemployment Rate is set to stay unchanged at 3.8% in the same period.