The EU Morning Report - Sterling and Euro Advances Against the Greenback - 25 November 2014


Currencies

  • The euro (EUR) rebounded from its two year low at 1.2358 up to 1.2444 against the US dollar (USD). The euro gained a part of its losses after the German Ifo Business Climate unexpectedly increased for the first time since April, boosting hopes for recovery.
  • The British Pound (GBP) rose around 100 pips and climbed up to 1.5713 against the US dollar (USD). The BoE kept the interest rates at record lows but remain higher than the interest rates in Japan and Europe. The sterling may be seen higher against a basket of currencies.

Equities

  • The European stocks are on a rally, with the Germany 30 (DAX) trades near its 2 month high at 9832, the EU stocks (ESX) climbed up to 3233 and France 40 (CAC) rose up to 4390.

Commodities

  • WTI Crude (OIL) fell from its high at 77.80 down to 75.44 US dollars per barrel. OPEC meets this Thursday and is considering to exempt three members from a reduction in production.

Mover & Shaker with forex options

  • The US dollar (USD) skyrocketed against the Canadian dollar (CAD) and reached its high at 1.1311. The loonie lost is momentum ahead of the Monthly Canadian Core Retail Sales due at 13:30 GMT and the expectations are on 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 Evdokia Pitsillidou
Currency Strategist at easy-forex®