The EU Morning Report - Canadian Dollar Gains Ahead of the BOC Press Conference - 22 October 2014


Currencies

  • The euro (EUR) slid from its high at 1.2839 all the way down to 1.2706 against the US dollar (USD). The single currency lost all previous day’s gains on speculation that the ECB may add corporate bond purchases to its monetary easing measures.
  • The US dollar (USD) skyrocketed from 0.9397 up to 0.94961 against the Swiss Franc (CHF). The swiss franc lost almost 100 pips as the Swiss National Bank (SNB) is ready to take any necessary measures in order to support the national currency.

Equities

  • The UK 100 (FTS) continues the upside as it climbed from its previous week low at 6041 up to 6369. The index advanced by 1.68% as travel companies gains.

Commodities

  • Copper (CPR) climbed up to 3.033 US dollars per Pound ahead of the Chinese Manufacturing PMI as China is the biggest consumer of industry metals.

Mover & Shaker with forex options

  • The US dollar (USD) declined by around 100 pips and reached the level of 1.1201 against the Canadian dollar (CAD) yesterday. The loonie gained momentum as the Canadian monthly Core Retail Sales are in the calendar, due at 12:30 GMT, with expectations at 0.2% and ahead of the BOC Press Conference schedules at 15:15 GMT.
  • Option traders may consider purchasing a PUT on USDCAD and gain if the pair continues the bearish momentum, while the risk is limited to the premium paid.

Written by Evdokia Pitsillidou
Currency Strategist at easy-forex®