US Unemployment Claims Set The Pace For Markets

Published 11/27/2013, 05:57 AM
Updated 05/14/2017, 06:45 AM

Currencies

  • The euro (EUR) volatility picked up over the last 24 hours with the single currency moving above 1.3597 against the dollar before crashing to 1.3575. The euro, which has been on the rise throughout November will be tested this afternoon as US unemployment claims are released

  • The US dollar (USD) has remained buoyant against the Japanese yen (JPY) above 101.13 over the week. As US initial Jobless claims are expected to come in at 330 thousand this afternoon, any improvement on the number could send the pair to higher highs.

Equities

  • The US 500 (SPI) has found resistance above 1804 and is currently moving around 1801.76. American equities may be pushed higher today should better employment data come out, indicating a strong recovery of the US economy.

Commodities

  • Brent Crude (BRT) has remained flat ranging around 110.94 over the past few days. Markets are expecting news to unfold over the Iran agreement which may shed light to energy markets.

Mover & Shaker with FX Options

  • The British pound (GBP) has continued moving from strength to strength this month against the dollar and was helped further by yesterday’s inflation report. GDP estimates are planned to be released today that may show new direction for the pair or let it test resistance at 1.6239.
  • Option traders may consider constructing Long Straddles on the Sterling to capitalise on volatility.
  • The Long Straddle is constructed by purchasing a Call option and Put option both at the money.


Disclosure: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose.

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