Currencies
- The euro (EUR) reached a new at 1.3113 against the US dollar (USD). The single currency remains under pressure and formed its new resistance at 1.3145, while is now trading at around 1.3120.
- The US dollar (USD) started its weekly session at 104.15 and climbed up to 104.86 against the Japanese yen (JPY). The pair reached a nine month low on speculation that Japan may reform its pension funds.
Equities
- The Asian indices advanced, with the Indian 50 (IND) recording a new record high at 8090, the China 50 (CNX) is trading around 7210 and Japan 225 (NKI) is near 15700.
Commodities
- Corn (CRN) fell from its weekly high at 369 down to 361 US dollars per bushel, as there is increased demand from US while supplies from the Black Sea may be interrupted due to the tensions in Ukraine.
Mover & Shaker with forex options
- The Australian dollar (AUD) slid around 70 pips and reached its low at 0.9284 against the US dollar (USD). The aussie dollar declined after the Reserve Bank of Australia (RBA) kept its interest rates at 2.5%, at their record low. In addition, the RBA governor, Glenn Stevens, stated that an overvalued currency hurts the economy.
- Option traders may consider constructing a Long Straddle on the AUDUSD 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 Call and Put.
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EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
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Week ahead – BoE and RBA decisions headline a calm week
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