Currencies
- The euro (EUR) dropped to 1.3368 against the US dollar (USD). The single currency is edging towards its lowest level since November 2013. Today the German ZEW Economic Sentiment survey data will be announced and is expected to come out at 18.2.
- The US dollar (USD) continues its bullish trend for a second consecutive day against the Japanese yen (JPY) at 102.27. The yen fell as tensions eased in Ukraine, reducing the demand for the currency as a safety haven. The yen is under pressure today as the quarterly Japanese Preliminary GDP data will be announced and are expected at -1.7%.
Equities
- The European equities gained yesterday as investors believe that the tensions between Russia and Ukraine will ease and that the US airstrikes might push the ISIS forces back. The Germany 30 (DAX) advanced to 9199, the France 40 (CAC) went to 4205 and the EU Stocks 50 (ESX) to 3052.
Commodities
- WTI Crude (OIL) gained for a fourth consecutive day to 97.84 USD per barrel, before Crude Oil Inventories are announced later today.
Mover & Shaker with forex options
- The British Pound (GBP) rose to 1.6794 against the USD dollar (USD) before retracing back to 1.6762 earlier this morning. The Pound fell to a two month low even as investors expect the central bank to be the first to raise rates.
- 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 amount.
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USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
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Gold holds below $2,300, Fedspeak eyed
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Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
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Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.