Currencies
- The euro (EUR) crashed yesterday against the US dollar (USD) at 1.3245, the lowest point since September. Today the European Manufacturing and Services PMI will be announced and are expected to be at 51.4 and 53.6.
- The US dollar (USD) continues its bullish trend against the Japanese yen (JPY) to 103.873. The dollar was the strongest currency yesterday as at the FOMC Meeting Minutes the Fed officials said that the Job gains might bring the interest rates rise faster, but the labour market needs to improve. Today the US Unemployment claims will be announced and are expected at 302K.
Equities
- The US equities rose yesterday as the Fed officials said during the FOMC that the Job gains might help the interest rates to rise faster. The US 500 (SPI) advanced to 1983, the US 30 (DOW) climbed to 16946 and the US Tech (NDQ) went to 4037.
Commodities
- Gold (XAU) fell from 1297 to 1275 as investors expect a stronger dollar after a potential rate hike from the Federal Reserve coming sooner than initially thought.
Mover & Shaker with forex options
- The British Pound (GBP) continues its bearish trend against the USD dollar (USD) at 1.6567. The cable rose on the Monetary Policy Committee Official Bank Rate Vote as there were two positive votes on increasing the interest rates, before dropping to its 4-month low on the release of FOMC.
- Option traders may consider constructing a Back Spread Strategy with Puts on the GBPUSD 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: Gains appear capped near 0.6580
AUD/USD made a sharp U-turn on Tuesday, reversing six consecutive sessions of gains and tumbling to multi-day lows near 0.6480 on the back of the robust bounce in the Greenback.
EUR/USD looks depressed ahead of FOMC
EUR/USD followed the sour mood prevailing in the broader risk complex and plummeted to multi-session lows in the vicinity of 1.0670 in response to the data-driven rebound in the US Dollar prior to the Fed’s interest rate decision.
Gold stable below $2,300 despite mounting fears
Gold stays under selling pressure and confronts the $2,300 region on Tuesday against the backdrop of the resumption of the bullish trend in the Greenback and the decent bounce in US yields prior to the interest rate decision by the Fed on Wednesday.
Bitcoin price tests $60K range as Coinbase advances toward instant, low-cost BTC transfers
BTC bulls need to hold here on the daily time frame, lest we see $52K range tested. Bitcoin (BTC) price slid lower on Tuesday during the opening hours of the New York session, dipping its toes into a crucial chart area.
Federal Reserve meeting preview: The stock market expects the worst
US stocks are a sea of red on Tuesday as a mixture of fundamental data and jitters ahead of the Fed meeting knock risk sentiment. The economic backdrop to this meeting is not ideal for stock market bulls.