The EU Morning Report - The cable is trading near its monthly low - 11 March 2014
Written by the easy-forex team
- The euro (EUR) consolidates between the levels of 1.3850 and 1.3897 against the US dollar (USD). The single currency made a rally the last few days advancing more than 200 pips from the beginning of the month and is now trading around 1.3865.
The US dollar (USD) rose from its low at 102.82 up to 103.42 against the Japanese yen (JPY) during yesterday’s session. Lower Chinese exports helped the yen to appreciate but the bullish momentum for the pair remains, as the Bank of Japan (BoJ) maintain its easing plan.
The US 500 (SPI) advanced from its low at 1865 up to 1878 yesterday. The index, tracking some of the world’s largest companies, is trading near its resistance at 1878.
WTI Crude (OIL) slid from its high at 102.95 down to 100.84 US dollars per barrel, on speculation that the US stockpiles rose during the previous week.
Mover & Shaker with FX Options
The British Pound (GBP) tumbled from its high at 1.6740 all the way down to 1.6620 against the US dollar (USD). The cable remains under pressure awaiting for the monthly production data to come out at 9:30 GMT.
- Options traders may consider constructing a Bear Put spread on GBPUSD
- 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