The EU Morning Report - Sweet gains as sugar prices rise - 24 April 2014
Written by the easy-forex team
- The euro (EUR) has broker lower from yesterday’s high of 1.3851 against the dollar. The single currency is moving just above 1.3820 in early trading with short term support at 1.3787.
The US dollar (USD) continues to retrace against the Japanese yen (JPY). The greenback has fallen below 102.31 while resistance still lies just above 102.70.
Chinese stocks reversed a five day fall in values. The drop was sparked by a contraction in manufacturing data and caused the China 50 (CNX) index to fall from 6906 to 6671 over the week. The index is currently trading just above 6789.
Sugar (SGR) prices are on the rise as the commodity spiked above 17.40 cents per pound. The increase in prices was triggered by expectations of low supply as Brazil’s Centre South region will see production by 5.2% as crops were affected by recent droughts.
Mover & Shaker with FX Options
Gold (XAU) remains on a bearish trajectory as it has lost more than 50 dollars during April. The precious metal is trading just below 1285.23 dollar per ounce.
- In the medium term, gold may continue its bearish trend and options traders may consider constructing a Bear Put Spread on XAUUSD.
- 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