The EU Morning Report - Copper on the rise - 23 April 2014
Written by the easy-forex team
- The euro (EUR) has twice edged higher after the low of 1.3786 against the dollar this week. The single currency may be tested today as French and German Manufacturing data are released this morning..
The US dollar (USD) is touching 2 week highs against the Japanese yen (JPY). The greenback continues to strengthen on fundamentals as investors experience consistent “positive data surprise”.
Japanese equities were on the rebound overnight. The Japan 225 (NKI) index, tracking the 225 largest Japanese and other Asian companies, has reached 14533 from 14368 beginning of the week.
Copper (CPR) prices are on the rise from last week. The metal suitable for so many applications has seen demand increase values to 3.0412 dollars per pound from 2.9660 only a few weeks ago.
Mover & Shaker with FX Options
Gold (XAU) continues to slide, reaching a monthly low below 1279 dollars per ounce. The precious metal has dropped from highs of 1392 and 1328 dollars per ounce over the last two months.
- In the medium term, gold may continue its bearish trend and options traders may consider constructing a Bear Put Spread on XAUUSD.
- A bear put spread can be constructed by purchasing an at-the-money Put and selling an out-of-the-money Put.
Currency strategist at easy-forex