Currencies
- The euro (EUR) continues the downside and reached its weekly low at 1.2632 against the US dollar (USD) The single currency slid as the US CPI came out better than expected yesterday. Looking ahead the European PMI due today, may drive the pair lower if data will be lower than forecasts.
- The British Pound (GBP) snap a two day losses as it fell from its high at 1.6183 down to 1.6010 against the US dollar (USD). The sterling is moving lower as the US dollar is strengthening across the board. The monthly UK Retail Sales are on the calendar, due at 08:30 GMT and with expectations at -0.1%..
Equities
- The US 500 (SPI) climbed from 1885 up to 1943 yesterday reaching its two week high, before energy shares declined due to lower oil prices.
Commodities
- WTI Crude (OIL) collapsed from 83.12 all the way down to 80.04 US dollars per Barrel, after the energy information Administration reported 7.1M barrels held in stockpile. We have seen the crude oil trading near its lowest levels in two years as supply increases more than expected.
Mover & Shaker with forex options
- The US dollar (USD) climbed up to 1.1292 where it found strong resistance before the retracement down to 1.1182 against the Canadian dollar (CAD). The dollar rose around 70 pips after worse than expected Canadian monthly Core Retail Sales. The pair retraced and lost 110 pips after the BOC monetary policy report, where the central bank considers the possibilities of rising interest rates in the near term.
- Option traders may consider purchasing a PUT on USDCAD and gain if the pair continues the downside, while the risk is limited to the premium paid in case of unexpected adverse market movements.
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