Currencies
- The euro (EUR) crashed yesterday while it reached its 8-month low against the US dollar (USD) at 1.3458. The single currency dropped after the yearly US CPI announcement which was near the target inflation that Fed set. This means that Fed might increase interest rates earlier than expected.
-
The US dollar (USD) climbed towards 101.59 against the Japanese yen (JPY). The monthly US CPI and the US Existing Home Sales were near expectations, as US might be the first country raising interest rates.
Equities
-
US equities gained yesterday. The US 500 (SPI) advanced to 1980, the US 30 (DOW) went to 17067 and the US Tech (NDQ) to 3958.
Commodities
-
WTI Crude (OIL) fell yesterday to 101.80 USD per barrel after industry report showed gasoline supplies expanded in the US. Today the Crude Oil Inventories will be announced with expectations at -2.1M barrels held in inventory.
Mover & Shaker with FX Options
-
Gold (XAU) remains range bound and is now trading near 1306 US dollars an ounce. Gold skyrocketed after the yearly US CPI from 1301 all the way up to 1315 before retracing back where is now trading.
- Option traders may consider constructing a Long Straddle on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle can be constructed by buying an at the money Put and an at the money Call.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.