Currencies
- The euro (EUR) fell to 1.2418 against the US dollar (USD) yesterday as the German monthly WPI was worse than expected by dropping -0.6%, while the expectations were at 0.2% increase. Today the German monthly CPI and the French monthly CPI will be announced with expectations at -0.3% drop and -0.1% drop respectively.
- The US dollar (USD) remains near its highest level since October 2007 at 115.58 against the Japanese yen (JPY), as the Prime Minister of Japan Shinzo Abe will call a general election. Today the US Unemployment claims will be announced with expectations at 280K.
Equities
- Asian equities continued to climb as the sales-tax hike in Japan delayed. The Japan 225 (NKI) climbed to an all-time high 17482, the Hong Kong 50 (HSX) advanced to 24007, the China 50 (CNX) went to 7804 and the India 50 (IND) to 8456.
Commodities
- Brent Crude oil (BRT) fell yesterday to a four years low at 80.48 USD per barrel as OPEC members remain unwilling to cut output.
Mover & Shaker with forex options
- The British pound (GBP) crashed from 1.5939 to 1.5758, while it reached a 14-month low, against the US dollar (USD) yesterday as Bank of England (BOE) said that inflation might drop even further in the next months, with possibilities of dropping below 1%.
- 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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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
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Gold struggles to hold above $2,350 following US inflation
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Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
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