Currencies
- The euro (EUR) recorded a new 11-month low at 1.3178 against the US dollar (USD). The pair fell as the German Ifo Business Climate index came out less than expected, at 106.3, while the expected was at 107.1.
- The US dollar (USD) fell down to 103.88 against the Japanese yen (JPY), as the US New Home Sales were less than expected at 412K, while the expected sales were at 426K. Today the US monthly Core Durable Goods Orders and the US CB Consumer Confidence will be announced and are expected to rise by 0.5% and 89.1 respectively.
Equities
- US equities gained yesterday with the US 500 (SPI) reached for first time 2000 while the US 30 (DOW) and the US Tech (NDQ) recorded new high at 17100 and 4078.
Commodities
- WTI Crude (OIL) remained range bound to 93.50 USD per barrel before the supply data announcement on Wednesday.
Mover & Shaker with forex options
- The British Pound (GBP) rose up to 1.6597 against the US dollar (USD), after the bad home sales data from the US.
- 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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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.
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