Currencies
- The euro (EUR) remains near its one year low against the US dollar (USD) at 1.2938. The single currency remains under pressure as today the German Trade Balance will be announced and is expected to be at 17.3B.
- The US dollar (USD) rose to 105.22 before retracing back to 105.11 against the Japanese yen (JPY), as the Japanese Current Account were worse than expected at 0.10T, while the expected were at 0.18T. The greenback continues to be the strongest currency despite the low Non-Farm Employment Change on Friday which were at 142K new jobs, while the expected were at 226K.
Equities
- The UK 100 (FTS) closed on Friday at 6873 and it will be very interesting to see how it will react after the Scottish independence leads for first time in poll, as the sterling dropped by 160 pips.
Commodities
- WTI Crude (OIL) fell on Friday from 94.97 US dollars per barrel to 92.86, before rebounded back to 93.50 earlier today as the China slowdown its imports.
Mover & Shaker with forex options
- The British Pound (GBP) dropped on the opening by 160 pips, from 1.6323 to 1.6164 against the US dollar (USD), as the Scottish independence campaign comes ahead for the first time after the poll showed 51% votes “Yes”. The cable continues to be under pressure as the Scotland’s referendum will be on 18th of September which will decide the future of Scotland.
- 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 Puts while buying an out of the money Puts at double amount.
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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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