During the session on Thursday, we anticipate without a doubt the most important announcement being the UK Interest Rate Decision. We don’t necessarily anticipate that it will move the market by itself, just that there could be a statement accompanying the decision that moves either the GBP/USD pair, or possibly the FTSE. With that being said, we do like buying calls in the FTSE on pullbacks.
The EUR/USD pair will of course be influenced by the US Initial Jobless Claims, which of course could move not only the US dollar, but the US stock markets. We like buying pullbacks in the US stock markets, and we have recently got one. Because of this, we are buyers of calls as it appears the Federal Reserve is looking at possible delays when it comes to tightening monetary policy due to the Federal Reserve Meeting Minutes they came out during the session on Wednesday. With that, we are still very bullish of the US stock markets, buying calls in all indices at this point in time.
The GBP/USD pair did strengthen during the session on Wednesday, but still has to worry about the 1.63 level above which should be massively resistive. Because of this, we think that this market will more than likely continue to grind a little bit higher in the short-term, but will ultimately be a nice put buying opportunity closer to the 1.63 level as it is so resistive. Any resistive candle in that area will have us buying puts, as we do not think that the British pound will continue to strengthen against the US dollar for any great length of time.
Silver markets look incredibly week still. After all, the market did have a slightly positive day during the session on Wednesday, but only formed a shooting star. We are most certainly buyers of puts in the silver market on a break below the $17 level.