Currencies
- The euro (EUR) dropped against the US dollar (USD) to 1.3356. The single currency trades near its lowest level since November. Today the European Current Account will be announced and is expected to be at 19.3B.
- The US dollar (USD) rose against the Japanese yen (JPY) to 102.56. The greenback is under pressure as the yearly US Core CPI will be announced today and is expected to rise by 2.0%. A better CPI will boost demand for dollar as signs of earlier increase in interest rates will rise.
Equities
- The US equities gained yesterday as tensions in Ukraine and Middle-East eased. The US 500 (SPI) advanced to 1969, the US 30 (DOW) climbed to 16817 and the US Tech (NDQ) went to 4019.
Commodities
- Wheat (WHT) dropped to 539.75 USD per bushel as the tension between Ukraine and Russia might disrupt exports from the Black Sea and that the rain forecasted in Australia may boost the supply of wheat.
Mover & Shaker with forex options
- The British Pound (GBP) remained range bound against the USD dollar (USD) to 1.6720 as the yearly UK CPI is coming ahead today and is expected to rise by 1.8% This will be a test for the cable, as a possible rise in CPI will increase speculations for earlier increase in interest rates. As volatilities remain low, options buyers are finding bargain strategies to capitalise on market movements.
- Option traders may consider constructing a Straddle on the GBPUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Straddle can be constructed by buying an at the money Put and an at the money Call.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD clings to small gains above 1.2550
Following Friday's volatile action, GBP/USD edges highs and trades in the green above 1.2550. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold price rebounds on downbeat NFP data, eyes on Fedspeak
Gold price (XAU/USD) snaps the two-day losing streak during the European session on Monday. The weaker-than-expected US employment reports have boosted the odds of a September rate cut from the US Fed.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
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.