New Instrument for Futures and Options Traders
Below is a MRR and PLR article in category Finance -> subcategory Currency Trading.
New Opportunities for Futures and Options Traders
Overview
Investment is returning to U.S. stocks, with oil taking center stage on HedgeStreet last week. Crude prices fell by 5.01%, closing at $59.76, as investors remained skeptical of an OPEC production cut.
Key Trends in Commodity and Currency Markets
Oil was the dominant force on HedgeStreet, but other markets were lively as well. The dollar strengthened, rising 0.68% against the euro to $1.2595 and 0.75% against the yen, closing at 119.01 yen. The yen's ongoing weakness is unexpected, especially after the Bank of Japan ended its easy money policy earlier this year. Meanwhile, the Dow surged to a record high of 11,850.21.
Bonds faced significant sell-offs on Friday, with the 10-year yield climbing 12 basis points to 4.70%. Gold prices plunged 4.38%, ending at $572.40. These shifts bode well for the U.S. economy: cheaper energy helps counteract housing market weaknesses and boosts corporate profits, while lower gold prices may indicate milder inflation next year. Investment is flowing back into U.S. stocks, supporting the dollar, and long-term interest rates remain low. Notably, Freddie Mac will release its 30-year mortgage composite on Thursday, and HedgeStreet binaries will cease trading on Wednesday. The CHF and CAD are now trading intra-day.
This Week’s Highlights
- Corporate News: Virgin is considering canceling Airbus A380 orders. Major earnings reports are expected from GE, Pepsi, Costco, and McDonald’s.
- Regulatory Developments: The FCC is set to vote on telecom mergers. Additionally, U.S. customs will halt the seizure of cheaper Canadian drugs at the border, despite imports being illegal.
Upcoming Economic Releases
- Tuesday: Wholesale inventories are forecasted to rise by 0.7% as sales outpace, keeping the inventory-to-sales ratio low at 1.15 months. The Treasury budget is predicted to show a $45-55 billion surplus, with a 12% year-on-year rise in receipts and an 8% increase in expenditures.
- Wednesday: Crude inventory figures and FOMC minutes will be released.
- Thursday: Initial unemployment claims are expected to be around 311,000. The trade balance is anticipated to be -$66.5 billion, an improvement from July's record of -$68 billion, driven by a rebound in exports.
- Friday: Retail sales are predicted to rise by 0.2%, with ex-auto figures at 0.0%, impacted by lower gas prices. However, autos might underperform.
Industry Tidbits
Starbucks plans to expand to 40,000 locations from its current 12,000. Meanwhile, PetSmart intends to open 850 pet hotels, offering luxury stays for pets at $36 a night. Additionally, talks of a potential merger between CME and Deutsche Börse have surfaced, though the strategic rationale remains unclear.
These developments provide a rich landscape for futures and options traders to navigate and capitalize on.
You can find the original non-AI version of this article here: New Instrument for Futures and Options Traders.
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