The EU Morning Report - Oil Plunges to Record Lows - 28 November 2014
- The euro (EUR) dropped against the US dollar (USD) yesterday at 1.2455 as the Spanish yearly CPI came out to be worse than expected at -0.4%, while the expectations were at -0.3%. The single currency is under pressure as the European yearly CPI Flash Estimate will be announced today and is expected to rise by 0.3%..
- climbed to 118.32 against the Japanese yen (JPY) yesterday. Yen now is rebounding as the economic data from Japan were better than expected. The greenback strengthened yesterday against most of major currencies.
- Japanese equities gained on better economic data, while Chinese equities had its biggest weekly gain as oil prices dropped. The Japan 225 (NKI) climbed to 17489 and the China 50 (CNX) advanced to 8499.
- WTI Crude (OIL) and Brent oil (BRT) plunged to a 4-year low at 67.74 and 71.12 USD per barrel as OPEC failed to take action on the drop of oil prices.
Mover & Shaker with forex options
- The Canadian dollar (CAD) crashed to 1.1353 yesterday against US dollar as the oil prices slumped to a new four years low. The loonie depreciated despite the better than expected Current Account, as oil is one of the most important exports in the country. Today the Canadian quarterly GDP will be announced and is expected to rise by 0.4%.
- Option traders may consider buying a Call on the USDCAD and gain if the pair moves higher, while the risk is limited to the premium paid.
Written by Demetris Constantinou
Currency Strategist at easy-forex®