The EU Morning Report - Sterling trades near its two year high - 10 December 2013
Written by the easy-forex team
- The euro (EUR) advanced even higher during yesterday’s session and touched its monthly high at 1.3767 against the US dollar (USD). The single currency is now trading around 1.3747 and it may break even higher in the short term.
The US dollar (USD) consolidates around the level of 103 against the Japanese yen (JPY). The greenback strengthened during the past week against the yen and it seems that more data needed from the US in order to pave the ways towards higher highs.
The US equities advanced even higher yesterday. The US 500 (SPI) continued the increase from Friday after better than expected Non-Farm Payrolls release. The index is now trading near its record high around the level of 1810.
- WTI Crude (OIL) rebounded from its yesterday’s low at 97.10 up to 97.78 US dollars per barrel. The crude oil prices rose as US supplies are falling for a second week, which is the world’s biggest consumer.
Mover & Shaker with FX Options
The British Pound (GBP) made a rally yesterday gaining more than 140 pips against the US dollar (USD) and reached its two year high at 1.6464. The British monthly Manufacturing Production is on the calendar, due at 9:30 GMT. Anything higher than the expected of 0.4% may drive the pair even higher.
- Option traders may consider constructing a Bull Call Spread on GBPUSD and benefit from a possible upside of the bullish trend.
- The Bull Call Spread involves the purchase of an in-the-money Call while selling out an out-of-the-money Call option on GBPUSD and reducing the cost of forming the bullish position.
Currency strategist at easy-forex