Currencies
- The euro (EUR) rebounded from 1.2394 to 1.2498 against the US dollar (USD) yesterday before the European quarterly GDP and US monthly Core Retail Sales announcements on Friday. The single currency is still under pressure as it remains near its lowest level since August 2012. Today the German monthly WPI (change in wholesale price) and the European monthly Industrial Production will be announced with expectations at 0.2% increase and 0.6% increase respectively.
- US dollar (USD) skyrocketed from 114.63 to 116.01 yesterday against the Japanese yen (JPY), extending its 7-year high on speculations that the Prime Minister of Japan Shinzo Abe will call for early elections before the sales-tax hike he was planning. Today the monthly Japanese Core Machinery Orders will be announced and are expected to drop by -1.0%.
Equities
- Asian equities gained yesterday on speculation that the Japanese government will delay the sales-tax hike once again. The Japan 225 (Nikkei) climbed to 17374, the Hang Seng 50 (HSX) advanced to 23972, the CHINA 50 (CNX) went to 7794 and the India 50 (IND) to 8412.
Commodities
- WTI Crude (OIL) fell yesterday to 76.43 USD per barrel as OPEC members resisted cutting output despite the low prices. Oil remains near its lowest level since October 2011.
Mover And Shaker With Forex Options
- The British pound (GBP) rose to 1.5943 against the US dollar (USD) yesterday ahead of the inflation report later today. The Governor of Bank of England (BOE) Mark Carney will speak in the BOE Press Conference in London about the future of the UK economy, along with the inflation report and any stimulus measurements he might need to add to the monetary policy in order to boost the economy.
- Option traders may consider buying a Call on the GBP/USD and gain if the pair moves higher, while the risk is limited to the premium paid.
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