Currencies
- The euro fell to 1.2705 before rebounded back to 1.2803 yesterday against the USD as the periphery bond yields gained yesterday. The European Central Bank (ECB) stated that they will use more stimulus measurements if needed to support recovery.
- The US dollar rose to 106.49 against the Japanese yen as the US economic data were better than expected. The US Unemployment Claims were at 264K, while the expectations were at 286K. Today the Federal Reserve Chair Janet Yellen will speak in Boston about US economy and she may reveal some hints about future projections.
Equities
- US equities gained yesterday as the US Industrial Production and Philly Fed Manufacturing Index were better than expected at 1% increase and 20.7, while the expectations were at 0.4% increase and 19.9 respectively. The S&P 500 advanced to 1869, the Dow 30 went to 16113 and NASDAQ Composite to 3786
Commodities
- Oil rebounded to 84.83 USD per barrel after hitting a new lower lows at 79.98 USD per barrel, despite the bigger than expected stockpiles at 8.9 million barrels, while the expectations were at 2.3 million barrels.
Mover & Shaker with forex options
- The British Pound (GBP) rose to 1.6108 yesterday against USD despite the better US economic data. Investors believe that sterling might be undervalued as the UK average earnings and unemployment were better on Wednesday.
- 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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