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Kiwi Crashed On Bad China Import Data

Published 12/08/2014, 04:33 AM
Updated 03/09/2019, 08:30 AM
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Currencies

  • The euro (EUR) dropped to a new 2-year low against the US dollar (USD) on Friday at 1.2270 as the US Non-Farm Payrolls (NFP) came out to be the highest since June 2010 at 321K, while the expectation were at 231K. Today are the Eurogroup meetings and they will discuss a range of financial issues, such as euro support mechanisms and government finances.
  • The US dollar (USD) continues its bullish trend against the Japanese yen (JPY) on Friday while it reached a new 7-year high at 121.84. Yen fell as the Japanese quarterly Final GDP came out to be worse than expected at -0.5% decrease, while the expectations were at -0.1% decrease. Yen depreciated by 11.6% since 31st of October 2014.

Equities

  • US equities gained on Friday as the NFP came out to be better than expected as investors amid speculation that US oil producers will compete OPEC for market share.

Commodities

  • WTI Crude (Oil) continues its bearish trend and is currently trading near its 5-year low at 65.18 USD per barrel as investors amid speculation that US oil producers will compete OPEC for market share.

Mover & Shaker with forex options

  • The New Zealand dollar (NZD) crashed to 0.7640 earlier today against US dollar as the imports of China fell by 6.7%, one of its biggest trading partners. The kiwi is at its lowest level since June 2012 and is under pressure as the Official Cash Rate will be announced by the Reserve Bank of New Zealand on Wednesday, following a Press Conference and Rate Statement, that will state any future changes in the monetary policy.
  • Option traders may consider buying a Put on the NZD/USD and gain if the pair moves lower, while the risk is limited to the premium paid.

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