The EU Morning Report – Gold reaches two-month high as markets price in Iraq conflict – 20 June 2014
Currencies
The euro (EUR) continues its bearish trend against the US dollar (USD). The pair climbed by 0.7% from 1.3521 to 1.36245 this week, which is the biggest weekly gain in the last two months. Investors are looking ahead at Eurozone current account data coming out this afternoon.
The US dollar (USD) dropped against the Japanese yen (JPY) to 101.81 from 101.95 yesterday. The greenback is under pressure after the Fed’s statement on Wednesday, while today the governor of Bank of Japan Kuroda will speak as the Japanese economy is halfway towards its inflation target.
Equities
Asian equities fell from a six-year high as materials and technology companies edged lower. The Japan 225 (NKI) moved to 15374, the Hong Kong 40 (HSX) to 16820, the China 50 (CNX) to 6679, while the India 50 (IND) traded above 7554.
Commodities
Natural Gas (NGS) fell yesterday towards 4.58 dollars per mmBTU as Natural Gas Storage came out slightly higher than expected.
Mover & Shaker with FX Options
Gold (XAU) skyrocketed to a two-month high, as the Fed said it will keep interest rates near zero for a considerable time, while the violence in Iraq and the tension in Ukraine boosted demand for the precious metal.
Option traders may consider constructing an Iron Butterfly Strategy on the XAUUSD and gain if the pair remains within a range, while the risk is limited to the premium paid.
An Iron Butterfly Strategy can be constructed by buying an out the money Put and an out of the money Call, while selling an at the money Put and an at the money Call.
Written by Demetris Constantinou
Currency strategist at easy-forex
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
The EU Morning Report – Gold reaches two-month high as markets price in Iraq conflict – 20 June 2014
Currencies
The US dollar (USD) dropped against the Japanese yen (JPY) to 101.81 from 101.95 yesterday. The greenback is under pressure after the Fed’s statement on Wednesday, while today the governor of Bank of Japan Kuroda will speak as the Japanese economy is halfway towards its inflation target.
Equities
Asian equities fell from a six-year high as materials and technology companies edged lower. The Japan 225 (NKI) moved to 15374, the Hong Kong 40 (HSX) to 16820, the China 50 (CNX) to 6679, while the India 50 (IND) traded above 7554.
Commodities
Natural Gas (NGS) fell yesterday towards 4.58 dollars per mmBTU as Natural Gas Storage came out slightly higher than expected.
Mover & Shaker with FX Options
Gold (XAU) skyrocketed to a two-month high, as the Fed said it will keep interest rates near zero for a considerable time, while the violence in Iraq and the tension in Ukraine boosted demand for the precious metal.
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Click here to visit Easy-Forex.com
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