The EU Morning Report – Pound remains under pressure before Carney speech – 15 July 2014
Currencies
The euro (EUR) rose towards 1.3619 against the US dollar (USD). The single currency gained yesterday even after president of European Central Bank (ECB) Mario Draghi warned about currency appreciation is a “risk to the sustainability of the recovery”.
The US dollar (USD) climbed to 101.59 against the Japanese yen (JPY) before Fed Chairman Yellen’s testimony. Yellen is going to reveal more today about when the central bank will raise interest rates.
Equities
US equities gained yesterday. The US 500 (SPI) advanced to 1971, the US 30 (DOW) went to 16987 and the USTech (NDQ) to 3923.
Commodities
WTI crude (OIL) is near to its two-month low at 100.92 oil demand in the US remains low before the weekly inventory data announcement.
Mover & Shaker with FX Options
The British Pound (GBP) crashed towards 1.7083 after reaching 1.7140. The pound is under pressure today as the yearly GBP Core CPI will be announced while later the Bank of England’s Governor Mark Carney will speak about the economy of the country. Markets are jittery while looking ahead to when the interest rates will be increased.
Option traders may consider constructing a Back Spread Strategy with Puts on the GBPUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
A Back Spread Strategy with Puts can be constructed by selling an at the money Put while buying an out of the money Put at double amount.
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 – Pound remains under pressure before Carney speech – 15 July 2014
Currencies
The US dollar (USD) climbed to 101.59 against the Japanese yen (JPY) before Fed Chairman Yellen’s testimony. Yellen is going to reveal more today about when the central bank will raise interest rates.
Equities
US equities gained yesterday. The US 500 (SPI) advanced to 1971, the US 30 (DOW) went to 16987 and the USTech (NDQ) to 3923.
Commodities
WTI crude (OIL) is near to its two-month low at 100.92 oil demand in the US remains low before the weekly inventory data announcement.
Mover & Shaker with FX Options
The British Pound (GBP) crashed towards 1.7083 after reaching 1.7140. The pound is under pressure today as the yearly GBP Core CPI will be announced while later the Bank of England’s Governor Mark Carney will speak about the economy of the country. Markets are jittery while looking ahead to when the interest rates will be increased.
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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