Currencies
- The euro (EUR) fell down to 1.3583 on Friday against the US dollar (USD), while US had a Bank Holiday. Euro continues its bearish trend at one-week lows and could stay under pressure after the European Central Bank officially emphasized the need for interest rates to remain low for longer period.
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The US dollar (USD) dropped from its two week high at 102.26 down to 101.96 against the Japanese yen (JPY). The pair rose today on Tokyo opening but it started retracing. Tonight the Japanese Current Account data will be announced with expected value to be at 0.17 Trillion.
Equities
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US equities looks that are retracing from their highs as the dollar strengthen. The US500 (SPI) trades around 1975, the US30 (DOW) around 16964 and the USTech (NDQ) at 3912.
Commodities
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Corn (CRN) crashed down to 409 US cents per bushel and recorded its six month high, as corn stubbles are big and managed to move the price of the commodity lower.
Mover & Shaker with FX Options
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Gold (XAU) edging lower while is now trading near US dollars an ounce, as the US Non-Farm Payrolls started to have late impact on the metal. Investors are looking for riskier assets and not for the safe haven.
- Option traders may consider constructing a Back Spread Strategy with Puts on the XAUUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
- A Back Spread Strategy with Puts can be constructed by selling an at the money Put while buying an out of the money Put at double amount.
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Editors’ Picks
AUD/USD remains firm above 0.6600 ahead of RBA
AUD/USD maintains its bullish bias well and sound on Monday, extending the multi-session recovery past the 0.6600 barrier ahead of the key interest rate decision by the RBA.
EUR/USD keeps the constructive tone near 1.0800
EUR/USD started the week in a positive note amidst the Dollar’s inconclusive price action, altogether motivating the pair to attempt a move to the proximity of the 1.0800 region, where the 200-day SMA also converges.
Gold holds on to modest gains around $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Bitcoin price holds above $63K as MicroStrategy tops BTC ownership list
Bitcoin (BTC) price recorded a rather bold two days this past weekend in a surge that saw millions in positions liquidated. However, the week is off to a calm start with altcoins sucking liquidity from the BTC market.
Stagflation warning: Service economy contracts as prices rise
In another stagflation warning sign, the U.S. service sector contracted in April even as service prices rose. The Institute for Supply Management's non-manufacturing PMI dropped to 49.4 in April, dipping from 51.4 in March.