Currencies
- The euro (EUR) continues its bearish trend against the US dollar (USD). The pair crashed yesterday towards 1.3409, while reaching a new 8-month low. The single currency is under pressure as US ADP Non-Farm Employment Change and FOMC Statement is coming ahead today.
- The US dollar (USD) climbed to 102.07 against the Japanese yen (JPY) as the US CB Consumer Confidence data was better than expected at 90.9. After last week’s US Unemployment claims, where data was at the lowest for the last three years, the dollar strengthened while the FOMC Statement will be announced today.
Equities
- US equities fell yesterday as the President of the US, Barack Obama, announced new sanctions against Russia while he warned Russia for their actions against Ukraine. The US 500 (SPI) fell to 1964, the US 30 (DOW) went to 16858 and the US Tech (NDQ) to 3956.
Commodities
- WTI Crude (OIL) fell to 101.40 USD per barrel before supply data, as a Kansas refinery shut down, one of the most important refineries in the US, increased demand concerns.
Mover & Shaker with forex options
- Gold (XAU) dropped yesterday near a one week low at 1299as the US economy recovers faster despite increased tension in Ukraine and Gaza.
- Option traders may consider constructing a Long Straddle on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle can be constructed by buying an at the money Put and an at 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
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