Currencies
- The euro (EUR) advanced by 100 pips yesterday and is now trading around 1.2520 against the US dollar (USD). The German ZWE economic sentiment came out much better than expected and helped the currency to gain back some of its losses. The FOMC meeting minutes are due tonight at 19:00 GMT and a hawkish statement may push the pair higher.
- The US dollar (USD) recorded a new 7-year high at 117.41 against the Japanese yen (JPY). The yen continues the bearish momentum as Japan’s Prime Minister, Shinzo Abe, postponed a sales-tax increase and called for early elections.
Equities
- The Japan 225 (NKI) rebounded from 16914 all the way up to 17510 and is near its record high, as Shinzo Abe called for early elections.
Commodities
- WTI Crude (OIL) collapsed from 76.43 all the way down to 74.06 US dollars per barrel. The energy declined on speculation that OPEC may refuse a reduction of the production. Crude oil Inventories are on the calendar and due at 15:30 GMT with expectations at -0.7 Million Barrels.
Mover & Shaker with forex options
- The British Pound (GBP) slid below 1.5600 against the US dollar (USD), and trades near its yearly low. The cable remains under pressure as the inflation remains at a record low and it is anticipated that the BoE may delay to hike interest rates. On the calendar, we have the BoE MPC Meeting minutes, where the members vote for increase or decrease of the interest rates.
- Option traders may consider buying a Put on the GBPUSD and gain if the pair continues the downside, while the risk is limited to the premium paid.
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