Currencies
- The euro (EUR) dropped to a new 14-month low, from 1.2950 to 1.2880, against the US dollar (USD), despite the positive data from the German Trade Balance which were better than expected at 22.2 billion while expectations were at 17.3 billion. The pair still remains under pressure after the European Central Bank (ECB) cut the interest rates from 0.15% to 0.05% unexpectedly.
- The US dollar (USD) rose to its highest level since October 2008 earlier today against the Japanese yen (JPY) at 106.33. The greenback strengthened as investors speculate on improved figures of Unemployment Claims and Retail Sales that are due this week.
Equities
- US equities dropped yesterday. The US 500 (SPI) moved to 1997, the US 30 (DOW) went to 17074 and the US Tech (NDQ) to 4085.
Commodities
- WTI Crude (OIL) dropped to a 9-month low yesterday at 91.80 USD per barrel, before rebounding back to 92.80 due to low demand.
Mover & Shaker with forex options
- The British Pound (GBP) continued its bearish trend against the US dollar (USD) and is currently trading at its lowest point since November 2013 at 1.6077. Today the UK monthly Manufacturing Production will be released and it is expected to rise by 0.3%, while the governor of the Bank of England will be speaking in Liverpool about the UK economy’s future.
- 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 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.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
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Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
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