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The EU Morning Report: Euro Drops To 2-Year Low

Published 12/30/2014, 05:19 AM
Updated 03/09/2019, 08:30 AM
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Currencies

  • The euro (EUR) fell to 1.2123 earlier today against the US dollar (USD) as concerns rose that in the earlier Greek elections that will be held at the end of the month, the anti-austerity party will win and put in danger the country’s bailout agreement. Today the Spanish yearly Flash CPI will be announced along with European yearly M3 Money Supply and European yearly Private Loans and their expectations are -0.7% drop, 2.6% rise and -0.9% drop respectively.
  • The US dollar (USD) rose to 120.72 against the Japanese yen (JPY) yesterday, as US economy seems to recover faster than others amid speculations on rising the interest rates in the middle of 2015. Today the US CB Consumer Confidence will be announced and is expected to be at 94.6.

Equities

  • The Japanese equities fell earlier this morning as oil price drop hurt the oil producers. The Japan 225 (NIKK) dropped to 17467, the China 50 (CNX 200) advanced to 11110 and the Hong Kong 40 (HSX) fell to 23512.

Commodities

  • WTI Crude (Oil) crashed to a new 5-year low at 52.89 USD per barrel as US inventories will stay at high levels.

Mover and Shaker with forex options

  • Gold (XAU) rebounded from 1178 to 1190 earlier today as stocks retreated, while demand rose for the precious metal as an alternative investment.
  • Option traders may consider buying a Call on the XAUUSD and gain if the pair moves higher, while the risk is limited to the premium paid. .

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