The EU Morning Report - US Equities Hit Record Highs - 21 November 2014


Currencies

  • The euro (EUR) remains above 1.2500 and formed its resistance at 1.2575 against the US dollar (USD). The euro erased part of its losses after the FOMC meeting minutes on Wednesday as policy makers are sceptical regarding a possible hike of the interest rates in the near future. Mario Draghi will hold the 24th European Banking Congress in Frankfurt today at 08:00 GMT and a positive tone may help the euro to break higher.
  • The US dollar (USD) climbed up to 118.97 and reached its highest level since august 2008 against the Japanese yen (JPY). The pair retraced back to 117.34 after the finance minister, Taro Aso, stated that the yen depreciated more than expected.

Equities

  • The US equities reached new record highs as the US economy is recovering. The US 500 (SPI) climbed up to 2055, the US Tech (NDQ) rose to 4253 and the US 30 (DOW) reached its high at 17723.

Commodities

  • WTI Crude (OIL) rebounded from 74.20 all the way up to 76.80 US dollars per barrel, as OPEC members are resisting reducing supply in order to support prices.

Mover & Shaker with forex options

  • Gold (XAU) fluctuates between the levels of 1175 and 1200 while is now trading near 1193 US dollars an ounce. The precious metal advanced on speculation that higher borrowing costs in US will boost demand for haven assets.
  • Option traders may consider buying a CALL on the XAUUSD 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®