Currencies
- The euro (EUR) collapsed and reached its lowest level since January at 1.3500 against the US dollar (USD). The single currency continues its bearish momentum, on speculation that the Federal Reserve may increase the interest rates by the middle of 2015.
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The US dollar (USD) traded near its 6 months low last week against the Japanese yen (JPY), while is now trading around 101.20. It looks that investors shift towards haven assets after the crash of the Malaysian airlines on Thursday. Thus the appreciation of the yen.
Equities
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Global indices were hit on Thursday and it looks that they are now recovering, with the US 500 (SPI) rose from 1942 up to 1973, the UK 100 (FTS) increase from 6640 up to 6719 and the Australia (ASX) climbed up to 5503.
Commodities
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WTI Crude (OIL) climbed from its three month low at 99.00 all the way up to 103.90 US dollars per barrel, during the previous week. The energy is strongly correlated with the tensions in Ukraine and Gaza.
Mover & Shaker with FX Options
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Gold (XAU) rose up to 1324 US dollars per ounce on Thursday afternoon after Rebels hit the Malaysian civilian aircraft. The precious metal retraced back to 1310 where is now trading, affected by the strong US dollar.
- Option traders may consider constructing a Long Straddle Strategy on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle Strategy can be constructed by purchasing an at-the-money Call and Put.
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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.