Daily Market Updates & Trading Signals By Option Banque

[Option_Banque]

Daily Report on November 30, 2016 by Option Banque

Daily Report on November 30, 2016



The U.S. dollar headed for its sharpest one-month advance since May as Treasuries fell, sending yields higher that spurred gains in the greenback. The U.S. dollar, which tracks the greenback against a basket of six major peers, climbed 0.17 percent to 101.16 in the second half of Asian trading session.

Industrial metals extended their declines to a second-straight session after the London Metal Exchange Index reached the highest since May 2015 on Monday. While copper hit one-week low at $2.5500/lb, tin and nickel each slumped at least 0.7 percent. The London Metal Exchange Index may fall further to day after tumbling 3.4 percent on Tuesday, its biggest one-day retreat in more than a year.

Crude oil futures reversed higher in nervous trading on Wednesday ahead of an OPEC meeting later in the day. International Brent crude hit an intra-day high at $47.43 per barrel, up 2.4% from its last close. Meanwhile, U.S. West Texas Intermediate (WTI) crude was up 2.1% to $46.14 per barrel. The Organization of the Petroleum Exporting Countries is trying to thrash out an output cut deal and is expected to deliver such an agreement later today.

The American Petroleum Institute late Tuesday reported crude oil inventories in the U.S. fell 720,000 barrels last week, following a draw of 1.28 million barrels the previous week. The reading was 120,000 barrels more than expected.

Elsewhere, according to the Ministry of Economy, Trade and Industry, Japan's industrial output expanded for a third straight month in October. Supported by exports of electronics and other products to China, Japanese output rose 0.1% month-on-month following a rise of 0.6% in September.



Technicals

AUDNZD



Fig: AUDNZD H4 Technical Chart

AUDNZD has been nose-diving from the resistance at 1.05900. The pair has broken the 23.6% retracement and is expected to test over one-week low at 104.150. However, as can be observed from two indicator windows, the market has entered the oversold zone, implying an upcoming correction.

Trade suggestion

Buy Digital Call Option from 1.04150 to 1.04800 valid until 20:00 GMT November 30, 2016



EURCAD



Fig: EURCAD H4 Technical Chart

EURCAD pulled back after a correction from the start of this week. The pair had rebounded from the lowest level since late-April at 1.41650 and sent the market to the overbought zone. As can be seen from the Stochastic chart, the %K line has crossed over the %D line from above, suggesting a reversal into a down trend.

Trade suggestion

Buy Digital Put Option from 1.42700 to 1.42000 valid until 20:00 GMT November 30, 2016



WTI



Fig: WTI H4 Technical Chart

Crude price scaled back from the 23.6% Fibonacci level, looking set to complete the double bottom pattern as the price is likely to surge past the neck level at 50.0% retracement. In the event of continual upbeat moves, the commodity prices may attempt the next Fib. level at 61.8%.

Trade suggestion

Buy Digital Call Option from 47.50 to 48.50 valid until 20:00 GMT November 30, 2016



CAC40



Fig: CAC40 Index H4 Technical Chart

CAC40 index is struggling under the 61.8% retracement after failed to breach this level. However, bullish momentum supported by two MAs is expected to sustain the price’s rally. RSI is pointing upwards, consolidating further advance. The French benchmark may test the resistance at 4600.00 threshold.

Trade suggestion

Buy Digital Call Option from 4570.00 to 4600.00 valid until 20:00 GMT November 30, 2016

 

[Option_Banque]

COFFEE signal by Option Banque

From 149.35
Till 147.00

Option Digital
Direction Put
Expiry GMT 21:00 30/11/2016

 

[Option_Banque]

FTSE Trade Idea by Option Banque

FTSE Ticks Higher, Supported By Soaring Oil Price

U.K. share surged in morning session on Wednesday as a rally in oil producers’ stocks overshadowed a drop in Royal Bank of Scotland PLC’s equities.

West Texas Intermediate oil took off nearly 6%, while Brent crude jumped 6.86% following reports that OPEC Secretary General Mohammad Barkindo said the group will reach an output-cut deal in Vienna on Wednesday. Shares of oil producers BP PLC added 2.77% while those of Royal Dutch Shell PLC gained 3.77%.
According to the result of the Bank of England’s stress test released earlier today, Royal Bank of Scotland PLC would have to raise capital by around £2 billion ($2.5 billion) to meet regulatory requirements. Shares of the lender lost 4.01%.
Other bankers which are Standard Chartered and Barclays were also revealed to fail the stress test but neither bank has to submit new capital plans. However, shares of those banks edged more than 0.5% lower.

Trade suggestion
Buy Digital Call Option from 6820.00 to 6850.00 valid until 20:00 GMT November 30, 2016

 

[Option_Banque]

Brent Crude Market Outlook by Option Banque

OPEC To Trim Output For The First Time In 8 Years, Brent Soars

International Brent crude jumped more than 8% on Wednesday after the Organization of the Petroleum Exporting Countries agreed to curb oil output for the first time since 2008.

Brent crude futures for January delivery soared to one-month highs at $50.45 per barrel, on course for their biggest one-day move in nine months. According to an OPEC source, the 14-nation cartel has reached an output limiting deal in order to splash production by 1.2 million barrels a day to 32.5 million a day.

The move aims at draining a crude glut that’s pushed down prices for two years, which will help oil-producing countries revive their tattered finances.

It’s not yet known how deep key OPEC member Saudi Arabia will cut but the kingdom had already stated that it had been prepared to accept “a big hit” on its own production. The largest oil producer of the OPEC also agreed to allow its rival Iran to freeze output at pre-sanctions levels.

The agreement is also reported to call for a reduction of about 600,000 barrels a day by non-OPEC countries

The U.S. Energy Information Administration on Wednesday said domestic crude supplies fell by 884,000 barrels in the week ending November 25. The figure contrasted with analysts’ expectations for an increase of 636,000 barrels.

Fig: BRENT D1 Technical Chart

Brent crude price has not only broken above the 23.6% retracemnet but also crossed over both short-term and long-term MAs, suggting a strong bullish momentum. The advance has sent the oil market into a bullish territory. As RSI keeps surging, Brent crude is expected to test the resistance at 51.00.

Trade suggestion
Buy Digital Call Option from 50.00 to 51.00 valid until 20:00 GMT November 30, 2016

 

[Option_Banque]

Daily Report on December 1, 2016 by Option Banque

Daily Report on December 1, 2016



Crude prices extended their gains on Thursday after soaring strongly on Wednesday as the Organization of the Petroleum Exporting Countries agreed to its first output cut since 2008. Energy shares were given a fresh boost, fueling global benchmark indexes to sweep higher. The MSCI Asia Pacific Index added 0.7 percent with a sub-gauge of energy stocks jumping 4.4 percent. Japan’s Topix index reached highest level since January, rallying 0.9 percent, while Hong Kong’s Hang Seng Index was up 0.6 percent.

OPEC finally took action to clear a glut that has reigned in the market for two years. West Texas Intermediate crude rose more than 1% to trade as high as $50.22 after surging 9.3 percent last session, the biggest one-day gain since Feb. 12. The commodity finished November up 5.5 percent. The OPEC-led deal was broader than expected, given that the output-cut agreement extended beyond the bloc with Russia also joining output reductions for the first time in 15 years.

Meanwhile, after less than a year rejoining the OPEC, Indonesia has suspended its membership of the cartel. The net oil importer said it could not agree to the group's production cuts level which was offered at 37,000 barrels per day (bpd), or about 5 percent of Indonesia’s output.

Elsewhere, Bank of Japan board member Makoto Sakurai on Thursday cleared doubts that the central banks’ bond-buying program was nearing a limit, saying the BOJ would continue to buy massive amounts of government bonds even under a new policy framework targeting interest rates. Speaking in a conference in the city of Otsu, western Japan, Sakurai also underlined supports and efforts of Japanese government and companies to help BOJ beat subdued inflation and growth in Japan by raising wages and promoting innovation.



Technicals

USDJPY



Fig: USDJPY H4 Technical Chart

USDJPY has been struggling around the 61.8% Fibonacci retracement since yesterday. This is the highest level since early March. The pair reached the overbought market on Wednesday and had to retreat as investors took profit. However, with a market in favor of buyers, USDJPY may break above this level to test the resistance at 116.000.

Trade suggestion

Buy Digital Call Option from 114.500 to 116.000 valid until 20:00 GMT December 01, 2016



AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD has given up its bullish strength to reverse lower after hitting the short-term MA20. The pair extended its down moves following a correction from one-week lows at 0.73734. As RSI is pointing to the oversold zone and two MAs are exerting downwards pressure on the price, AUDUSD may fall to as low as 50.0% level.

Trade suggestion

Buy Digital Put Option from 0.73800 to 0.73300 valid until 20:00 GMT December 01, 2016



SILVER



Fig: SILEVR H4 Technical Chart

SILVER has pulled back from 61.8% retracement. Under pressure from two MAs and the Fibonacci level, the metal is anticipated to extend its downside. RSI index has scaled back from the 50 line, suggesting an overwhelmingly dominant bearish force.

Trade suggestion

Buy Digital Put Option from 16.300 to 16.000 valid until 20:00 GMT December 01, 2016



BRENT



Fig: BRENT H4 Technical Chart

Brent has been trading sideways under a solid resistance at 52.70. The commodity which soared vigorously from the 23.6% retracement has neared the overblown market. Therefore, a consolidation at this level is understandable. The short-term MA20 has converged with the long-term MA50 from below, supporting further advances.

Trade suggestion

Buy Digital Call Option from 52.70 to 53.80 valid until 20:00 GMT December 01, 2016

 

[Option_Banque]

EUR/GBP signal by Option Banque

From 0.84600
Till 0.84000

Option Digital
Direction Put
Expiry GMT 21:00 01/12/2016

 

[Option_Banque]

GBPUSD Trade Idea by Option Banque

Sterling Rallies On Hopes Of Continual Access To The Single Market

Sterling jumped more than 1% to a three-week high against the U.S. dollar after David Davis revealed that the government may make EU budget contributions in return for access to the single market.

The pound extended its rally to a third-straight session on Thursday to as high as $1.26618 following remarks by Britain’s Brexit minister that London would consider paying into the EU budget for market access if it meant “getting the best deal” for goods and services.

The pair GBPUSD had previously plummeted to historic lows following June’s vote to leave the European Union as investors feared that a “hard Brexit” would force Britain to give up full access to the European free trade market.

Trade suggestion
Buy Digital Call Option from 1.26400 to 1.26700 valid until 20:00 GMT December 01, 2016

 

[Option_Banque]

Natural Gas Market Outlook by Option Banque

Falling U.S. Stockpiles Magnifies Cooler Weather Effects On Natural Gas

U.S. natural gas continued to edge higher on Thursday, bolstered by new federal data that showed the additional amount of gas in storage fell last week amidst cooler forecasts which helped raise expectations for demand.

Natural-gas futures for January delivery jumped more than 3.5% to $3.501 a million British thermal units on the New York Mercantile Exchange. Natural gas has been on a rise, rallying around 25% in the last two weeks, approaching the 10-month highs at $3.544/mmBtu logged on October 18th.

The U.S. Energy Information Administration on Thursday reported that natural gas stockpiles dropped by 50 billion cubic feet last week. The draw sent total natural-gas stocks now stand at .995 trillion cubic feet, 0.6% above levels from last year and 6.25% above the five year average.

Meanwhile, latest forecasts show below-average temperatures spreading across most of the country starting next week. Lower temperatures will increase natural gas demand for heating, helping to dispel fears that a glut of supply will continue to weigh on prices.

Fig: Natural Gas D1 Technical Chart

Natural gas is heading for the 0.0% Fibonacci level after rebounding from the 50.0% retracement. Although the ADX index is soaring with a wide gap between the +DI and -DI lines, RSI has neared the overbought zone. Given the strong resistance at 0.0% level, that handle can be the near-term target.

Trade suggestion
Buy Digital Call Option from 3.500 to 3.540 valid until 20:00 GMT December 02, 2016

 

[Option_Banque]

Daily Report on December 02, 2016 by Option Banque

Daily Report on December 02, 2016



The U.S. dollar eased against most of its peers on Friday as investors eagerly waiting for a monthly U.S. jobs report that could be the main factor driving the currency in coming days. The dollar index, which tracks the strength of the greenback versus a basket of six major currencies, poised to close the week lower. The index pared some losses in the European morning session but has dropped 0.5% for the week.

On the contrary, the euro firmed around $1.06700 having gained 0.9 percent so far this week. The Italian referendum on Sunday remains the focus for the common currency. The referendum could reject Prime Minister Matteo Renzi's constitutional reforms and worsen Italy's fragile banking system, potentially sapping investor confidence in the currency union.

Crude prices turned lower in Asian trading hours before regaining some bullish momentum in European trade. Optimism over this week's OPEC-Russia accord on cutting output has fueled Brent’s rally to reach 16-month high on Thursday. However, traders are now focusing their attention on implementation of the deal when OPEC holds talks with non-OPEC producers on Dec. 9.

Elsewhere, Australian retail sales were reported to advance for the third consecutive month in October. The national statistics bureau on Friday announced that retail sales rose at a seasonally adjusted 0.5% to $25.616 billion, following a gain of 0.6% in September. The upbeat figure was boosted by food retailing, household goods and cafes and restaurants, which offset declines at department stores and clothing retailers. Retail sales account for more than half of Australia’s gross domestic product (GDP).



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP reversed lower as the bullish force failed to beat pressure from two MAs hanging above the price action. RSI has also pulled back from the central line which indicates a strong bearish momentum. Down moves may bring the pair to as low as 38.2% level.

Trade suggestion

Buy Digital Put Option from 0.84400 to 0.83950 valid until 20:00 GMT December 02, 2016



EURCAD



Fig: EURCAD H4 Technical Chart

EURCAD has been struggling around the lowest level since late April at 1.41780. The pair has been trading sideways to lower with two MAs lingering above the price action. RSI pointing to the oversold zone supports further declines.

Trade suggestion

Buy Digital Put Option from 1.41600 to 1.40600 valid until 20:00 GMT December 02, 2016



NASDAQ 100



Fig: NASDAQ 100 Index H4 Technical Chart

NASDAQ 100 index continued to slump following a breakout from the slopping downward support that connects lower highs. The short-term MA20 is likely to cross over the long-term MA50 from above, consolidating the downtrend. However, as can be seen in two indicator windows, both RSI and Stochastic index have entered the oversold zone. Therefore, the down move seems limited.

Trade suggestion

Buy Digital Put Option from 4709.00 to 4673.50 valid until 20:00 GMT December 02, 2016



CAC40



Fig: CAC 40 Index H4 Technical Chart

CAC40 index is trading round the support at 4500.00 and looks set to break below this level. Different from failed attempts in mid-November when the index was supported by the short-term MA20, the prices are under downward pressure from two MAs at the moment. Should the CAC40 breach the support level, it can attempt the next support at 50.0% retracement.

Trade suggestion

Buy Digital Put Option from 4490.00 to 4450.00 valid until 20:00 GMT December 02, 2016

 

[Option_Banque]

Sugar Market Outlook by Option Banque

Falling Brazil’s Real And Weak Demand Sustain Sugar Losing Streak

Sugar prices dropped nearly 2.7% on Thursday, heading for the eight-straight week of decline due to a fresh tumble in the Brazilian real and weakening demand from China and India.

Brazil’s real underperformed even a weaker dollar, plunging 2.3% to 3.4645 on Thursday on concerns that economic reforms may be overshadowed by political discord. Previously, Brazil’s central bank opted to trim its Selic rate to 13.75% from 14% on Wednesday, citing political turbulence and uncertainties stemming from the U.S. election as reasons for a quarter-point cut. The move follows a quarter-point reduction in October that was the first cut in four years.

As Brazil is the leading producer and exporter of sugar, a weaker real will send prices of the agricultural commodity in real terms higher, which prompted Brazilian exporters to sell more to the foreign market. New York raw sugar futures for March 2017 delivery fell to 19.33 cents a pound, a four-month closing low for the contract.

On the demand side, China, the world’s top buyer of commodity, has greatly cut back on imports as tight global supplies doubled benchmark global prices, sending them to more than 24 cents per pound in early October. As stated by Chinese customs data showed last Thursday, the country’s October sugar imports dropped around 70 percent from a year ago to their lowest level since February at 110,000 tons.

Beijing recently sold over 300,000 tons of sugar from its reserves in the first such auctions in five years, boosting supply in domestic markets. As a result, imports are also expected to be low next month as buyers turn to local sugar supplies.
Meanwhile, India said it would curb imports this year thanks to stored supplies that remain strong.

Fig: Sugar D1 Technical Chart

Sugar has been on a downtrend since late September which sent the commodity price below 23.6% level. As the RSI index has neared the oversold zone, and the 38.2% Fibonacci support is within the sight, the downside seems limited. Sugar may attempt the 38.2% level in the event of continual down moves.

Trade suggestion
Buy Digital Put Option from 19.30 to 19.00 valid until 20:00 GMT December 02, 2016

 

[Option_Banque]

EUR/USD signal by Option Banque

From 1.06400
Till 1.05700

Option Digital
Direction Put
Expiry GMT 21:00 02/12/2016

 

[Option_Banque]

Gold Trade Idea by Option Banque

Mixed U.S. Jobs Report Helps Gold Rise For The First Time In Four Sessions

Gold futures turned higher on Friday, on track to rise for the first time in four sessions as the U.S. dollar on the back of a U.S. monthly jobs report.

Gold ticked up to around $1175.00 per ounce, paring their loss for the week after the U.S. government data showed that the economy added 178,000 new jobs in November with unemployment rate falling to a nine-year low in the month.

The U.S. dollar index, which measures the greenback against a half-dozen rivals, lost 0.28% to 100.68 on Friday, contributing to a weekly loss of roughly 0.8% as Friday’s jobs results were considered to be mixed. Although the jobless rate dropped to its lowest level since August 2007 at 4.6%, the labor force contracted by 226,000, sending the participation rate to 61.7 from 62.8 percent, the lowest since June. Additionally, wage growth declined 0.1% on a monthly basis, which is somewhat bullish for longer-term treasuries and negative for the dollar.

Trade suggestion
Buy Digital Put Option from 1175.00 to 1190.00 valid until 20:00 GMT December 05, 2016

 

[Option_Banque]

Central Bank Policy Meetings To Dominate the Economic Calendar

Central Bank Policy Meetings To Dominate the Economic Calendar

The U.S. dollar fell broadly in the second-half of last week after hitting a 13-1/2 year high on Wednesday. The dollar index closed the week lower following consistent gains in the last three weeks. The gauge that measures the greenback against a half-dozen rivals lost 0.28% to 100.68 on Friday, contributing to a weekly loss of roughly 0.8% as Friday’s jobs results were considered to be mixed.

Although the jobless rate dropped to its lowest level since August 2007 at 4.6%, the labor force contracted by 226,000, sending the participation rate to 61.7 from 62.8 percent, the lowest since June. Additionally, wage growth declined 0.1% on a monthly basis, which is somewhat bullish for longer-term treasuries and negative for the dollar.

The Fed will almost certainly raise interest rates later this month but the chance of an early 2017 follow-up hike may have faded due to the subdued nonfarm payrolls report. Fed fund futures indicate a 100% chance of a hike at this mid-December meeting. However, the fact that the odds of another quarter-point move remains below 50% until June 2017 shows that investors expect a hike followed by a long pause.

In the week ahead, there are no major U.S. economic reports scheduled but the ISM non-manufacturing number. The Institute for Supply Management is scheduled to release its November’s result for the U.S. service sector activity on Monday. The index is expected to rise to 55.4 from October’s 54.8.

Besides, three Federal Reserve officials including Chicago Fed President William Dudley and St. Louis Fed head James Bullard are due to speak. Their remarks will be closely watched ahead of the upcoming Fed meeting on December 13-14th.

Nonetheless, what will dominate the economic calendar next week are central banks’ meetings. The ECB is to hold its final monetary policy meeting of 2016 on Thursday. No policy change is expected but the press conference with President Mario Draghi following the rate decision will be closely watched for clues over the ECB’s bond purchasing program which expires in March of next year.

The Bank of Canada is expected to hold rates steady at its meeting on Wednesday despite having said that the bank was actively considering cutting for the third time in two years in October. Data on Friday which showed the economy added 10,700 jobs in November and the jobless rate fell to 6.8%, indicated improving labour market.

The Canadian dollar gained ground for the second week against the greenback as OPEC ministers finally agreed to trim its output by million barrels per day. The deal is still contingent on the participation of non-OPEC nations like Russia, with analysts hoping for a production cut by 600,000 barrels a day.

Like the BOC and the ECB, the RBA is also anticipated to keep interest rates on hold at record lows of 1.5% at its meeting on Tuesday. Wednesday’s data on third quarter growth will follow with rate of growth being expected to slow slightly at 0.3% in the three months to September, after expanding by 0.5% during the second quarter.

 

[Option_Banque]

Daily Report on December 05, 2016 by Option Banque

Daily Report on December 05, 2016



The euro declined on Monday after Italian Prime Minister Matteo Renzi said he would resign as his reforms, which aim at simplifying the legislative process, have been defeated in a referendum on Sunday. Renzi’s departure, which came on the heels of Britain’s shock vote to exit the European Union and Donald Trump’s unexpected victory, threats to embolden a renewed political and financial turmoil in Europe. The euro touched its weakest point in 20 months at $1.05048 in the early hours of Asian session.

Stocks also retreated with the MSCI Asia Pacific Index losing 0.4 percent. Japan’s Topix index, Australia’s S&P/ASX 200 Index, Korea’s Kospi 200 index and New Zealand’s S&P/NZX 50 Index all turned lower. Futures on the S&P 500 Index shed 0.3 percent while FTSE 100 Index futures edged 0.6 percent lower.

Chinese yuan and shares declined on Monday after Donald Trump took on the Chinese government via social media. The offshore yuan lost 0.2 percent to 6.8842 per dollar, its first loss in three days while the Shanghai Composite Index and the Hang Seng China Enterprises Index lost fell 1.2 percent, and 0.8 percent, respectively. Trump reiterated on his Twitter some of the grievances about China related to the country’s yuan devaluation and military complex building in the South China Sea.

Crude oil futures ticked lower on concerns that producers outside of OPEC will boost oil production on the back of rising prices. While Russia on Friday announced the highest average daily oil production in almost 30 years at 11.21 million bpd in November, U.S. energy firms were reported to extend drilling activities into a seventh month. Data from energy services firm Baker Hughes showed that the U.S. oil rig count rose by 3 rigs last week, sending the total amount of added oil rigs since its trough on May 27, 2016 to 161.



Technicals

EURUSD

Fig: EURUSD H4 Technical Chart

EURUSD has broken out of a trading range from 1.05700 to 1.06500. The pair has also crossed over two MAs, which suggesting a reversal into a downtrend. As can be observed from the Stochastic chart, the %K line and %D line are pointing downwards, indicating further decline.

Trade suggestion

Buy Digital Put Option from 1.05600 to 1.05000 valid until 20:00 GMT December 05, 2016



AUDNZD

Fig: AUDNZD H4 Technical Chart

AUDNZD fell back below the 23.6% retracement at 1.04800 after failing to beat crossed over the long-term MA50. The slide has brought the market back to the bearish zone, as indicated by the RSI chart. The pair may retest a firm support at 1.04150 – the level that has restrained the price to fall lower for nearly a month.

Trade suggestion

Buy Digital Put Option from 1.04600 to 1.04150 valid until 20:00 GMT December 05, 2016



WTI

Fig: WTI H4 Technical Chart

WTI scaled back after retesting a six-week high at 51.70. The rally which sent the market into the overbought territory finally lost its momentum. The %K line has penetrated the %D line from above, indicating a correction that may prompt the commodity to hit the support at 50.50.

Trade suggestion

Buy Digital Put Option from 51.10 to 50.50 valid until 20:00 GMT December 05, 2016



FTSE 100 Index

Fig: FTSR 100 Index H4 Technical Chart

FTSE 100 index has been on a slide since last Wednesday. Lower highs and lower lows have been formed on the price action, indicating a strengthening bearish momentum. The index pulled back from one-month low at 6676.55 last Friday but it had to give up its strength after the price hit the resistance at 23.6% Fib. level.

Trade suggestion

Buy Digital Put Option from 6700.00 to 6650.00 valid until 20:00 GMT December 05, 2016

 

[Option_Banque]

FTSE Market Outlook by Option Banque

FTSE 100 Pares Early Losses But The Upside Seems Limited

U.K. equities jumped on Monday, recovering from a downbeat start as banks shares shrugged off early losses stemming from the resignation of Italy’s prime minister. The FTSE 100 index added more than 0.8% after opening 0.4% lower, led by gains in basic materials, industrial and consumer-goods sectors

Italian Prime Minister Matteo Renzi announced that he would resign, given the decisive “no” vote to his proposals, which aim at simplifying the legislative process, in Sunday’s referendum. The resignation of PM Renzi has sparked renewed political uncertainty and fears of another eurozone crisis following Britain’s shock vote to exit the European Union and Donald Trump’s unexpected victory.

However, ECB President Mario Draghi had pledged that any volatility resulting from the referendum could be met with further extensions to ECB bond buying. Draghi is scheduled to take part in the Eurogroup meeting in Brussels later today before the central bank holds its regular monetary policy meeting on Thursday.

Shares of the Royal Bank Of Scotland Group added 2.38% after the mainly state-owned bank agreed to pay out up to 800 million pounds ($1.02 billion) in shareholder rights issue litigation to help reduce further cost. Barclays PLC and Lloyds Banking Group gained 3.15% and 1.44%, respectively. Standard Chartered pared early losses to tick 0.19% higher.

With copper futures rising on Monday, shares miners were enjoying a great time. Antofagasta PLC rallied by 2.67%, Rio Tinto PLC advanced 1.8% while Glencore PLC climbed 1.39%. However, sector peer Randgold Resources PLC dropped 3.61%, tracing a nearly 1% loss for gold prices. Rangold’s fellow, Mexican-based precious metals mining company Fresnillo PLC also witnessed a drop of 2.84% in its shares’ prices.

Bullish sentiment was also spurred by reports from the Market that showed businesses in Britain’s services sector grew at their fastest pace since January last month. The services purchasing managers’ index (PMI) – a closely watched gauge of the services sector – rose to 55.2 in November from 54.5 in October, beating the high end of analysts’ forecasts.

Fig: FTSE 100 Index H4 Technical chart

FTSE 100 index has broken through the 23.6% Fibonacci level at 6742.46 but in general, the index has been on a downtrend. The upside seems limited as the resistance which is a slopping downward trendline is within the sight. Although the RSI index has moved passed the central line, two MAs are threatening the index’s rally.

Trade suggestion

Buy Digital Call Option from 6750.00 to 6800.00 valid until 20:00 GMT December 05, 2016

 

[Option_Banque]

Brent Trade Idea by Option Banque


Brent Moves Past $55 Despite Threats From Non-OPEC Producers

Brent crude oil broke above $55-per-barrel threshold on Monday, trading at a 16-month high, as rising prospects of a tightening market after an OPEC output cap deal overshadowed concerns over mounting production from producers outside of the cartel.

The international oil benchmark hit an intra-day low at $55.32 per barrel thanks to OPEC sentiment that continued to give speculators impetus to increase bets on higher oil prices.

Mohammed Sanusi Barkindo, OPEC’s secretary general stated at an energy conference on Monday that oil demand in Asia is likely to keep on rising steadily. Demand from India alone is expected to jump to more than 10 million barrels per day (bpd) by 2040, from 4.1 million barrels per day now, said Barkindo.

Meanwhile, the potential output cut agreement between OPEC and Russia might not be as deep as initially anticipated. Moscow has agreed to slash its output by 300,000 bpd in early 2017 and planned to use its November oil production as its baseline for the cut. However, Russia’s average daily oil output in November was reported to reach its highest in almost 30 years at 11.21 million bpd, suggesting that the nation’s output will remain high even after a reduction.

Trade suggestion

Buy Digital Call Option from 55.00 to 55.80 valid until 20:00 GMT December 05, 2016

 

[Option_Banque]

NZD/JPY signal by Option Banque

From 81.500
Till 82.500

Buy Option Digital
Direction Call
Expiry GMT 21:00 05/12/2016

 

[Option_Banque]

Daily Report on December 06, 2016 by Option Banque


Daily Report on December 06, 2016



Asian stocks joined a global relief rally on Tuesday as investors brushed off the defeat of Italy’s constitutional referendum. U.S. equities closed higher yesterday with after the Dow Jones Industrial Average setting a fresh record high. The benchmark finished up 45.82 points, or 0.2%, at 19,216.24, a fresh record close following strong economic data.

A report from the Institute for Supply Management on Monday showed American services industries grew at the fastest pace in 13 months in November. The service side of the U.S. economy that employs about 80% of Americans rose to 57.2% last month from 54.8% in October, signaling that more businesses are expanding instead of contracting. Given the fact that most companies reporting business is steady, the case for a rate hike later this month has been continually strengthened.

Australia’s central bank kept interest rates unchanged earlier today, citing a global commodity upswing as a factor that boost national income. The Reserve Bank of Australia left the cash rate at 1.5 percent Tuesday as higher resource export prices ease the impact of a weaker economy at home where labor-market hiring relies heavily on part-time employment as participation falls.

As the U.S. Federal Reserve will almost certainly tighten its policy this month, Governor Philip Lowe can wait for his Australian dollar to be pushed down by a stronger greenback without further easing. A fall in local currency’s prices will aid Australia’s key service exports of education and tourism that are highly sensitive to the exchange rate. The RBA’s next policy meeting isn’t until February, when the bank will release its updated quarterly growth and inflation forecasts.



Technicals

EURUSD

Fig: EURUSD H4 Technical Chart

EURUSD resumed its upbeat moves following a consolidation at around 1.07600. The market returned to the bullish zone after the pair pulled back from the lowest level in one year at 1.05048. Coupled with support from two MAs, ADX is soaring with a divergence between the +DI and –DI lines, suggesting further advances.

Trade suggestion

Buy Digital Call Option from 1.07800 to 1.08500 valid until 20:00 GMT December 06, 2016



USDCHF

Fig: H4 Technical Chart

USDCHF has been struggling around the support at 1.00600 after falling from as high as 1.01767. The price action has crossed over a couple of MAs from above, suggesting a reversal into a downtrend. While RSI is moving towards the oversold zone, ADX keep surging with a wide gap between +DI and –DI lines.

Trade suggestion

Buy Digital Put Option from 1.00500 to 0.99900 valid until 20:00 GMT December 06, 2016



BRENT

Fig: BRENT H4 Technical Chart

Brent crude has been trading in an upward trading range which has been formed by higher highs and higher lows since early August. The commodity price has bounced back from the lower boundary at 47.39 and is heading upwards to the upper boundary. As RSI has neared the overbought zone, a pullback may occur when Brent crude hits the resistance.

Trade suggestion

Buy Digital Call Option from 54.90 to 55.70 valid until 20:00 GMT December 06, 2016



EURO 50

Fig: EURO 50 Index H4 Technical Chart

Euro 50 index has moved past the resistance at 3060.00 which it failed to break above yesterday. The index may edge higher to attempt the 50.0% Fibonacci retracement as RSI is pointing upwards while the short-term MA20 has converged with the long-term MA50 from below.

Trade suggestion

Buy Digital Call Option from 3070.00 to 3090.00 valid until 20:00 GMT December 06, 2016

 

[Option_Banque]

GBP/JPY signal by Option Banque

From 145.400
Till 148.000

Buy Option Digital
Direction Call
Expiry GMT 21:00 06/12/2016

 

[Option_Banque]

USDZAR Trade Idea by Option Banque

SA Rand Keeps On Soaring Despite Weak GDP Report

The South African rand soared 0.8% to hit an intra-day high at 13.64345 per dollar on Tuesday even though the economic data coming out today pointed to the fact that the South African economy remains extremely weak. The pair USDZAR slumped for three days in a row after ratings agencies held off on junking the country’s financial reputation in the past two weeks.

Since last Friday when S&P Global Ratings affirmed the nation’s BBB- assessment, the local currency has gained more than 3.5%. However, according to a report released on Tuesday in Cape Town, South Africa’s gross domestic product only expanded at an annualized 0.2 percent rate in the three months through September. This was dramatically lower than the upwardly revised growth of 3.5 percent in the preceding quarter and failed to reach economists’ estimates of 0.6 percent growth in the third quarter.

Trade suggestion

Buy Digital Put Option from 13.59300 to 13.54700 valid until 20:00 GMT December 06, 2016