Currencies
- The euro (EUR) climbed from 1.2730 to 1.2630 yesterday against the US dollar (USD) The investors and analysts in Germany are pessimism about the future economy as the Germany ZEW Economy Sentiment came out to be at -3.6, while expectations were at 0.2. The European Industrial Production were also worse than expected as it drop by -1.8%, while the expectations were to drop by -1.5%. Today the President of European Central Bank Mario Draghi will speak at the European Cultural Days 2014 in Frankfurt and might reveal some hints about any additional future stimulus measurements.
- The US dollar (USD) climbed to 12-months high at 40.9632 against the Russian Ruble (RUB) as inflation data came out to be at 1.2% increase, while the expectations were at 1.4% increase. Today the UK 3-month Average Earnings Index will be announced along with Claimant Count Change, with expectations at 0.7% and -34.2K respectively.
Equities
- Asian equities gained, following disappointing European economic data. The Japan 225 (NKI) advanced to 15082, the Hong Kong 50 (HSX) rose to 23110, the China 50 (CNX) went to 7154 and the India 50 (IND) to 7945.
Commodities
- WTI Crude (OIL) plunges to a two year low at 81.32 USD per barrel as the demand for oil is in its slowest pace in five years.
Mover & Shaker with forex options
- British pound (GBP) crashed to 1.5888 yesterday against the US dollar (USD) as inflation data came out to be at 1.2% increase, while the expectations were at 1.4% increase. Today the UK 3-month Average Earnings Index will be announced along with Claimant Count Change, with expectations at 0.7% and -34.2K respectively.
- Option traders may consider buying a Put on the GBPUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
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Editors’ Picks
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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