Daily Market Updates & Trading Signals By Option Banque

[Option_Banque]

Daily Report on December 07, 2016 by Option Banque

Daily Report on December 07, 2016



Asian equities were broadly higher and European shares also climbed on Wednesday, following a rally in U.S. stocks that sent the Dow Jones Industrial Average hit another record on Tuesday.

The MSCI Asia Pacific Index added 0.4% while a weak Yen improves the competitiveness of Japanese exporters, helping the Nikkei index rise 0.74% in Tokyo. Stoxx Europe 600 jumped 0.73% with Germany's DAX 30, France's CAC 40 and U.K. benchmark FSTE 100 index all surging.

The Australian dollar fell against most of its major rivals after a report by the national Bureau of Statistics showed the world’s 12th-largest economy shrank by the most since 2008. The country’s gross domestic product was reported to decrease 0.5% in the three-month period to September compared to the prior quarter. The decline, which has not been seen since 2011, was driven by drops in construction and government spending.

Crude prices extended its slide on Wednesday on persistent doubts whether an agreement on crude production cut led by OPEC and Russia would be deep enough to deal with a global glut that has restrained markets for over two years. Since the deal was announced in a meeting last week, both OPEC and Russia have since reported record production.

OPEC and non-OPEC oil producers are scheduled to meet this weekend in Austria's capital to finalize details of the output cut, which aims at an overall reduction of around 1.5 million barrels per day.



Technicals

GBPAUD



Fig: GBPAUD H4 Technical Chart

GBPAUD has been on a slump since the pair reversed lower from as high as 1.71500. The pair is struggling around the long-term MA50. The RSI index has entered the bearish zone, signaling strengthening buyers. The pair may head to the support at 50.0% retracement.

Trade suggestion

Buy Digital Put Option from 1.68700 to 1.67620 valid until 20:00 December 07, 2016



CADJPY



Fig: CADJPY H4 Technical Chart

As can be seen from the price chart, CADJPY has been supported by the short-term MA20 although the pair is trading sideways and in a thin range. CADJPY may approach the 38.2% retracement as RSI remains in the bullish area, which shows that buyers are overwhelming in the market.

Trade suggestion

Buy Digital Call Option from 86.070 to 86.900 valid until 20:00 December 07, 2016



Sugar



Fig: Sugar H4 Technical Chart

Sugar resumed its downtrend following a correction from four-month low at 18.79. The commodity crossed over the short-term MA20 at 19.50 but failed to sustain the upbeat moves. RSI pulled back from the central line, indicating the defeat of bulls. The price is expected to test the 38.2% support.

Trade suggestion

Buy Digital Put Option from 19.45 to 18.75 valid until 20:00 December 07, 2016



DAX



Fig: DAX 30 Index H4 Technical Chart

DAX 30 index has been on a strong rise that sent the benchmark near the 61.8% Fibonacci retracement. As can be seen from the indicator chart, the RSI index has already penetrated the overbought zone, signaling an upcoming pullback. Coupled with the resistance at 61.8% level within the sight, a correction may occur around this handle.

Trade suggestion

Buy Digital Put Option from 10977.00 to 10860.00 valid until 20:00 December 07, 2016

 

[Option_Banque]

USD/JPY signal by Option Banque

USD/JPY signal by Option Banque

From 114.500
Till 116.000

Buy Option Digital
Direction Call
Expiry GMT 21:00 07/12/2016

 

[Option_Banque]

Daily Report on December 08, 2016 by Option Banque

Daily Report on December 08, 2016



Asian shares continued to rise on Thursday, ignited by fresh U.S. equity records. Both the S&P 500 Index and the Dow Jones Industrial Average rose to all-time high records yesterday, thanks to wagers that the European Central Bank may extend its asset buying program at a policy meeting due later today. The MSCI Asia Pacific Index soared 1.2% to its peak in one month, extending gains for a third day. Japan’s Topix index climbed 0.9% while gauges in Australia, South Korea and Hong Kong were also higher.

Risk appetites got an added boost after the Chinese General Administration of Customs reported upbeat trade figures for November. Official data on Thursday showed the country’s exports rose unexpectedly by 0.1% from a year earlier, while imports climbed 6.7% on strong demand for commodities. That left the country with a trade surplus of $44.61 billion for the month.

The euro was steady around 1.07700 versus the dollar with market attention turning to the ECB meeting. ECB chief Mario Draghi is expected to prolong the bank’s 80 billion euros ($86 billion) a month of bond purchases beyond March in the wake of Italy's "No" vote last weekend.

Crude price kept declining on Tuesday even after weekly report from the U.S. Energy Information Administration on Wednesday showed a deeper-than-expected draw in U.S. stockpiles last week. Crude oil inventories in the U.S. were reported to fall by 2.4 million barrels in the week that ended on Dec. 2, compared with analyst expectations for a draw of 1 million barrels. However, government data also pointed out that oil supplies at Cushing, Oklahoma, the biggest U.S. storage hub for crude futures, increased by a hefty 3.8 million barrels last week. This is the biggest weekly added amount since 2009.

In Japan, final third-quarter GDP reported by the Cabinet Office showed the economy expanded less than was projected. The Japanese economy grew an annualized 1.3% after economists predicted a rate of 2.3% with capital expenditure shedding 0.4% in the quarter and inventories subtracting 0.3 percentage point from growth.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has been moving sideways since yesterday after surging to around 0.85200. The short-term MA20 is heading upwards, attempting to cross over the long-term MA50 from below. With support from two MAs, the pair may approach the resistance at 0.85800. RSI remains above 50, consolidating further up moves.

Trade suggestion

Buy Digital Call Option from 0.85200 to 0.85800 valid until 20:00 December 08, 2016



EURUSD


Fig: EURUSD H4 Technical Chart

EURUSD has been on a rise following a consolidation at around 1.07200. The rally has been bolstered by two MAs hanging under the price action. Both RSI and ADX are soaring, confirming a strong upside. The pair may attempt the resistance at 1.08500.

Trade suggestion

Buy Digital Call Option from 1.08000 to 1.08500 valid until 20:00 December 08, 2016



Natural Gas



Fig: Natural Gas H4 Technical Chart

Natural Gas futures rebound from the 0.0% Fibonacci level at 3.540. The price was also supported by two MAs moving below the price action. Buyers seem to overwhelmingly dominate in the market as can be seen from the indicator chart, RSI has pulled back from the central line to move upwards in the bullish zone.

Trade suggestion

Buy Digital Call Option from 3.620 to 3.740 valid until 20:00 December 08, 2016



EURO 50



Fig: EURO 50 H4 Technical Chart

Euro 50 index has been on a correction after surging as high as 3160.00 – the highest level since April 21st.The rally from as low as 2974.10 had sent the pair into the overbought market which prompted investors to book profit. A reversal may occur around the support at 3122.00

Trade suggestion

Buy Digital Call Option from 3122.00 to 3160.00 valid until 20:00 December 08, 2016

 

[Option_Banque]

AUD/USD signal by Option Banque

From 0.75000
Till 0.75300

Buy Option Digital
Direction Call
Expiry GMT 21:00 08/12/2016

 

[Option_Banque]

Natural Gas Trade Idea by Option Banque

Natural Gas On A Rise Following A Draw In U.S. Storages

Natural gas futures were little changed on Friday after jumping yesterday following federal data that showed a draw from the U.S. stockpiles last week.

Natural gas for January delivery rose to $3.728 per million British thermal units after the U.S. Energy Information Administration reported Thursday that natural gas storage in the U.S. dropped by 42 billion cubic feet during the week to December 02nd. The result was in line with expectations, sending total stocks to 3.953 trillion cubic feet, up 51 billion cubic feet from a year ago and 254 billion cubic feet above the five-year average.

Weather forecasts also contributed to the rally, indicating below-average temperatures coming in across the country. As more than half of Americans using natural gas for space heating, lower temperatures in the winter will drive up demand and give a boost in prices.

Trade suggestion
Buy Digital Call Option from 3.710 to 3.740 valid until 20:00 GMT December 09, 2016

 

[Option_Banque]

EUR/CAD signal by Option Banque

From 0.39900
Till 0.39000

Option Digital
Direction Put
Expiry GMT 21:00 09/12/2016

 

[Option_Banque]

Daily Report on December 09, 2016 by Option Banque

Daily Report on December 09, 2016



Global shares continued to trade in a positive territory on Friday with European stocks climbing towards their best week since February. European shares advanced for a fifth session after the European Central Bank decided to extend its quantitative-easing program until the end of 2017. The Stoxx Europe 600 Index rose 0.3%, U.K. benchmark FTSE 100 added 0.14%, and France’s CAC 40 gained 0.20% while Germany’s DAX 30 retreated.

According to a statement in Frankfurt on Thursday, the Governing Council will increase its asset-buying program to exceed 2.2 trillion euros ($2.4 trillion). The central bank will continue to purchase assets after the initial expiry date in March but the month speed from April will be reduced to 60 billion euros ($65 billion) a month from 80 billion euros currently. The bank also stated that it can step up or prolong purchases if needed.

Oil rose a second day ahead a meeting this weekend in Vienna between the Organization of Petroleum Exporting Countries and 14 other nations. As stated by a government official familiar with the matter, Russia may fulfill its pledge to cut output by as much as 300,000 barrels a day if OPEC follows through on its commitment to curb production.

Elsewhere, China’s producer price index and consumer price index both came in above expectations on Friday. The reading from the National Bureau of Statistics for factory-gate inflation rose to the highest since late 2011. The PPI jumped 3.3% in November from a year earlier with prices in the mining industry surging 14.8%. Consumer prices picked up 2.3 percent on rising food costs which added 4 percent in the month.



Technicals

USDJPY

Fig: USDJPY H4 Technical Chart

USDJPY continued to swing back and forth around the 61.8% Fibonacci level at 114.113. In general, the pair has been supported by a couple of two moving averages. Bullish force remains dominating the bearish one, as stated by the RSI index which is surging higher. The pair may attempt the resistance at 116.00.

Trade suggestion

Buy Digital Call Option from 114.800 to 116.00 valid until 20:00 GMT December 09, 2016



EURGBP

Fig: EURGBP H4 Technical Chart

EURGBP has been on a sharp rise after a volatile trading yesterday. The pair broke out of a consolidation before rising as high as 0.85718 on Thursday. However, EURGBP quickly lost its bullish steam and fell off below the 0.84600 support. With two MAs hanging above the price action and a RSI that heading downwards, the pair is expected to hit the support at 0.83700.

Trade suggestion

Buy Digital Put Option from 0.84100 to 0.83700 valid until 20:00 GMT December 09, 2016



WTI

Fig: WTI H4 Technical Chart

U.S. crude sustained its rally from one-week low at 49.60 thanks to a boost from the long-term MA50. The advance has sent the price above the short-term MA20. The RSI index is pointing upwards after moving past the 50 line. The crude price may retest the high at 52.30 in the event of continual upbeat moves.

Trade suggestion

Buy Digital Call Option from 51.50 to 52.30 valid until 20:00 GMT December 09, 2016



FTSE 100

Fig: FSTE 100 Index H4 Technical Chart

FTSE 100 index has fallen into a correction following a sharp advance that brought the index above the 6920.00 resistance. A correction is resulted from an overblown market. As can be observed from the RSI indicator window, the index has just retreated from the overbought zone. In case of continual gain, the index may hit the 7,000.00 threshold.

Trade suggestion

Buy Digital Call Option from 6950.00 to 7000.00 valid until 20:00 GMT December 09, 2016

 

[Option_Banque]

Crude Oil To Open Higher, Focus On Fed And Yellen’s Remarks

Crude Oil To Open Higher, Focus On Fed And Yellen’s Remarks

U.S. stock market closed higher on Friday, after having set a string of record highs since the victory of the President-elect Donald Trump who pledged to bolster the world’s largest economy by increasing infrastructure spending, lowering taxes and loosening regulations.

At the close in NYSE on Friday, the Dow Jones Industrial Average gained 0.72% to hit a new all-time high at 19777.00, S&P 500 index climbed 0.59% to finish at 2259.54 while the NASDAQ Composite index gained 0.50%.

Coupled with a raft of pro-business policies by Trump, the broad-based rally was also supported by upbeat economic data. The University of Michigan’s report on consumer sentiment, a gauge of confidence in the economy, rose to 98.0 in December. The reading was just one-tenth of a percent from a cycle high recorded in 2015, which was the highest since 2004.

For the next week, investors will be looking at clues from the U.S. Federal Reserve (Fed) on how aggressive the central bank will hike rate next year amidst little doubt that the Fed will raise interest rates for the first time in a year on Wednesday. The Fed remains the sold central bank that is considering tightening its monetary policies against the background where others are mulling over more easing or keeping policy steady for a long period of time.

While markets are pricing in a near 100 percent chance for a quarter percentage point increase at Fed’s final meeting of 2016, President Janet Yellen’s guidance on a timetable for future tightening is eagerly expected when the U.S. central bank meets next week.

On the data front, major reports from the U.S. will come out on Wednesday and Thursday. The U.S. is to release data on retail sales on Wednesday. Retail sales are forecast to have advanced by 0.3% in November after a larger than expected 0.8% increase in October. A chain of data, including reports on consumer prices, jobless claims and manufacturing activity in both the Philadelphia and New York regions will be published on Thursday.

Additionally on Thursday, investors will also be focusing on a news conference U.S. President-elect Donald Trump for any hints about his economic policy plans.
Besides the Fed, the Bank of England and the Swiss National Bank are two other banks that are expected to keep its key rate steady at their policy-setting meetings on Thursday.

The euro dropped to as low as 1.05300 on Friday before paring some losses to close at 1.05551. The European Central Bank extended its asset purchases, albeit at a slower pace, on Thursday. Considering uncertainties from both inside and outside the 28-nation bloc namely Brexit, the U.S. election and the Italian referendum, the ECB decided to expand its quantitative-easing program to exceed 2.2 trillion euros ($2.4 trillion) by the end of 2017. However, the monthly pace will be reduced to 60 billion euros ($65 billion) a month from 80 billion euros currently.

According to the statement, the Governing Council may “increase the program in terms of size and/or duration” if the outlook becomes less favorable or if financial conditions become inconsistent with further progress toward a sustained adjustment of the path of inflation”.

The Canadian dollar, on the other hand, rose steeply on the back of the rebound in oil prices and the fact that the Bank of Canada left rates unchanged last Wednesday.

Crude prices are expected to start next week with a sharp jump after producers from outside the OPEC agreed to reduce output following a production cut deal by the 13-country group. Another 558,000 bpd will be slashed from global supplies after OPEC agreed to trim its production by 1.2 million barrels per day from Jan. 1. Top exporter Saudi Arabia had pledged to reduce as much as 486,000 bpd and may cut even deeper, Saudi oil minister Khalid al-Falih said after Saturday’s meeting.

Top non-OPEC producer, Russia, will cut 300,000 bpd.

 

[Option_Banque]

Daily Report on December 12, 2016 by Option Banque

Daily Report on December 12, 2016



Asian shares were mostly lower on Monday even though energy stocks were fueled by rising oil prices. The MSCI Asia Pacific Index dropped 0.4 percent, with Chinese markets tumbling the most. Coupled with worsening concern about the outlook for the property market, Shenzhen shares lost 4.9 percent also due to the fact that the nation’s insurance regulator banned some insurers from further investing in stocks, which spurred selling. The Shanghai Composite Index shed 2.4 percent while Hong Kong’s Hang Seng Index was off 1.4 percent.

Crude prices shot up by more than 4% to their highest level since 2015 after OPEC and non-OPEC producers reached their first deal since 2001 to jointly reduce output. Over the last weekend, producers from outside OPEC including the world’s top producer Russia, agreed to reduce output by 558,000 bpd. Although the deal was short of the initial target of 600,000 bpd but it still remains the largest contribution by non-OPEC ever.

Before that, the 13-nation cartel had signed an agreement to slash output by 1.2 million bpd from January 1st. Top exporter Saudi Arabia pledged to cut around 486,000 bpd to just below 10.1 million. Russia said it would gradually cut 300,000 bpd.

Japan’s Cabinet office data released on Monday showed that the country’s October core machinery orders rose for the first time in three months. Core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months were reported to soar 4.1 percent on a monthly basis in October, beating the economists' median estimate of a 1.0 percent increase.



Technicals

GBPCHF



Fig: GBPCHF H4 Technical Chart

GBPCHF has been trading sideways to higher since last Thursday. The pair has been supported by two moving averages that are hanging below the price action. However, as can be observed from last candles, long upper shadows show bulls were not strong enough to sustain its bullish momentum but bears were too weak to reverse the price direction. With RSI pointing upwards and a divergence between the +DI and –DI lines, the pair is expected to tick up.

Trade suggestion

Buy Digital Call Option from 1.28300 to 1.28800 valid until 20:00 GMT December 12, 2016



AUDCAD



Fig: AUDCAD H4 Technical Chart

AUDCAD has fallen below the 0.98000 threshold for the first time since early-September. The pair is moving in a sideways around 0.97807 as RSI has neared the oversold zone. The price may fall deeper to test the 61.8% support as bullish momentum is suppressed by two MAs lingering above the price action.

Trade suggestion

Buy Digital Put Option from 0.97800 to 0.97400 valid until 20:00 GMT December 12, 2016



Sugar



Fig: Sugar H4 Technical Chart

Sugar resumed its down moves following a correction that brought the metal to as high as 19.81. The price action penetrated the short-term MA20 from above again and is approaching the 38.2% Fibonacci support at 18.75. As RSI remains below 50, sugar is anticipated to extend its losses.

Trade suggestion

Buy Digital Put Option from 19.20 to 18.75 valid until 20:00 GMT December 12, 2016



SILVER



Fig: SILVER H4 Technical Chart

Silver has been on a decline since it reversed lower from the resistance at 17.200. The metal continued to broke below the support at 16.850 after crossing over the short-term MA20 at 16.941. Silver is struggling around the long-term MA50 at 16.738. RSI has fallen below the 50 line for the first time since early December, indicating a strengthening bearish force.

Trade suggestion

Buy Digital Put Option from 16.730 to 16.550 valid until 20:00 GMT December 12, 2016

 

[Option_Banque]

Gold Market Outlook by Option Banque

Higher U.S. Rates Threat Gold Wagers, Put Options Suggested

Gold prices hit their lowest level in more than 10 months on Monday on the back of a nearly 100 percent chance that the U.S. Federal Reserve will raise its key rate by a quarter percentage point later this week.

Gold touched $1151.21 per ounce troy in early Asian trading hours, dragged down by potential decline in demand for the non-yielding asset due to higher rates. Both a strong dollar and higher interest rates are typically bearish for gold, as rising rates lift the opportunity cost of holding non-interest bearing assets such as bullion, while a firmer dollar makes gold less affordable for investors holding other currencies.

The Fed is widely anticipated to hike interest rates for the second time in the last ten years at its two-day meeting this week. However, future rate increases remain uncertain.

According to U.S. Commodity Futures Trading Commission data showed on Friday, hedge funds and money managers trimmed their net long positions in the precious metal by 22,578 lots to 80,814 last week.

Fig: GOLD H4 Technical Chart

Gold has drifted below the 1160.00 support, weighed down by pressure from two moving averages that are hanging above the price action. The steady decline has sent the market into the oversold zone, as indicated by the RSI index that has fallen below 30 level. ADX is soaring with a wide gap between the +DI and -DI lines, suggesting further declines.

Trade suggestion
Buy Digital Put Option from 1155.00 to 1151.00 valid until 20:00 GMT December 12, 2016

 

[Option_Banque]

CAD/JPY signal by Option Banque

From 88.000
Till 88.700

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

 

[Option_Banque]

Natural Gas Trade Idea by Option Banque

Updates On Warmer Weather Snap Natural Gas’ Rally

Natural gas prices plummeted on Monday, weighed down by concerns that warmer weather indicated by latest forecasts may curb demand for the commodity.

Natural gas for January delivery hit an intra-day low at $3.471 a million British thermal units on the New York Mercantile Exchange, down nearly 7% compared with the last close. Prices had surged consistently in the last four weeks to reach the highest levels in two years thanks to weather forecasts that showed below-average temperatures this winter after an unusually warm autumn.

However, according to updates released over the weekend, temperatures are anticipated to not be as cold as previously expected, with warmer-than-typical temperatures across the eastern U.S.

Trade suggestion
Buy Digital Put Option from 3.550 to 3.470 valid until 20:00 GMT December 13, 2016

 

[Option_Banque]

Daily Report on December 13, 2016 by Option Banque

Daily Report on December 13, 2016



Asian shares were mixed on Tuesday after paring some losses in early trade. The MSCI Asia Pacific Index rallied 0.3 percent with gains in Japan’s equities and Chinese stocks offset declines in markets of Australia and New Zealand. In Tokyo, the Topix Index closed 0.6 percent higher following an earlier decline of 0.6 percent. The yen reversed lower against the greenback, dropping by 0.3 percent to 115.380 per dollar. Australia’s S&P/ASX 200 Index and New Zealand’s S&P/NZX 50 Index closed down 0.3 percent and 0.4 percent, respectively.

The Shanghai Composite Index trade up 0.1 percent on Monday, rebounding from earlier losses after China’s official data showed stronger-than-expected industrial output and retail sales, which helps boost Chinese regulators’ confidence to curb financial risks by some methods including pushing money market rates higher and curbing leveraged purchases of both stocks and bonds.

Industrial production was reported to jump 6.2 percent from a year earlier in November while retail sales rose 10.8 percent last month. The country has posted its strongest retail sales growth of the year which was led by sales of household electronics, communication appliances and office supplies. Online sales also witnessed a strong advance in November thanks to China’s annual online shopping bonanza Singles’ Day on Nov. 11.

The International Energy Agency on Tuesday reported that OPEC’s crude oil output in November rose by 300,000 barrels per day compared to that of October. The production of the 13-nation cartel reached, a record high of 34.2 million barrels a day, according to the IEA’s its closely watched monthly report. Of that, Saudi Arabia pumped at a record 10.63 million barrels a day in November, up 70,000 barrels a day from the previous month.



Technicals

EURCHF



Fig: EURCHF H4 Technical Chart

EURCHF had to give up its bullish strength after a consolidation around 1.07850. The pair retreated after hitting the short-term MA20 and is struggling at the 23.6% Fibonacci retracement. A RSI index heading to the oversold zone and a stochastic chart that showed both %K line and %D line are heading downwards are indicating a strengthening bearish momentum which can send the price lower.

Trade suggestion

Buy Digital Put Option from 1.07500 to 1.07200 valid until 20:00 GMT December 13, 2016



GOLD



Fig: GOLD H4 Technical Chart

Gold reversed lower following a correction yesterday. The precious metal once again broke below the 1160.00 support as the rally could not stand the heat from two MAs that are lingering above the price action. RSI remains in the bearish area and is pointing downwards. Additionally, the –DI and +DI lines are creating a widening gap, suggesting that the metal may attempt the support at 1150.00.

Trade suggestion

Buy Digital Put Option from 1157.00 to 1150.00 valid until 20:00 GMT December 13, 2016



WTI



Fig: WTI H4 Technical Chart

U.S. crude oil has rebounded from the support at 52.30 – the level has played an important part as a firm resistance for the price. Oil price failed to break out of the resistance at 54.00 yesterday after a strong surge sent the market into the oversold zone. With RSI heading upwards, the commodity is expected to retest the 54.00 level.

Trade suggestion

Buy Digital Call Option from 53.10 to 54.00 valid until 20:00 GMT December 13, 2016



NASDAQ 100



Fig: NASDAQ 100 Index H4 Technical Chart

U.S. benchmark NASDAQ 100 futures opened today’s session with a small jump and is trading around the 4800.00 threshold. The index looks set to attempt the all-time high level logged on October 25th at 4923.58 with supports from a soaring RSI and the convergence between the %K line and the %D line of the stochastic chart.

Trade suggestion

Buy Digital Call Option from 4885.00 to 4920.00 valid until 20:00 GMT December 13, 2016

 

[Option_Banque]

FTSE Market Outlook by Option Banque

Bank Shares Overshadow Weak Mining Sector, Powering FTSE 100 Index

U.K. shares turned higher on Monday thanks to gains in banking stocks that outweighed declines in mining shares.

The advance of London-listed banks’ equities was bolstered by upbeat sentiment from other European counterparts, after Italy’s largest bank by assets, UniCredit SpA UCG said on Tuesday it planned to cut jobs further and sell its assets in order to reinforce its capital base. In addition to the job cuts that had already been planned, UniCredit is about to cut another 6,500 jobs by 2019, bringing total reductions to 14,000, or 10% of its workforce.

The bank, which has a market capitalization of just under EUR15 billion, stated to launch a EUR13 billion ($13.8 billion) rights issue by the end of March and shed EUR17.7 billion of gross bad loans by bundling them into securities to be sold to investors.

Shares of Lloyds Banking Group added1.38%, Standard Charterer gained 1.04% while Barclays PLC moved up 0.53%. Royal Bank Of Scotland Group also picked up 0.4% and HSBC Holdings PLC ticked 0.92% higher.

However, mining shares capped the index’s rally today as metals prices fell on the back of a stronger U.S. dollar. Antofagasta PLC fell 2.26%, Rio Tinto PLC lost 2.01% and BHP Billiton PLC shed 0.96%. Precious metals producer Fresnillo PLC and Randgold Resources PLC were on a decline in the wake of sliding gold prices.

On the economic data front, the Office for National Statistics reported that the U.K.’s annual inflation climbed to its highest annual rate in more than two years. The CPI index rose to 1.2% in November, the highest rate since October 2014. The Bank of England is scheduled to release its last policy decision of 2016 on Thursday, with markets widely expecting that the bank will keep its key interest rate unchanged at 0.25%.

Fig: FTSE 100 Index H4 Technical Chart

The U.K.’s benchmark rebounded from nearly one-week low at 6868.00 and has broken above the resistance at 6920.00. The bullish momentum has been powered by the short-term MA20 which helped the index reverse higher on Tuesday. As indicated by the RSI that is heading to the overbought zone, the FTSE 100 index may surge higher to retest the 7000.00 threshold.

Trade suggestion
Buy Digital Call Option from 6930.00 to 7000.00 valid until 20:00 GMT December 14, 2016

 

[Option_Banque]

AUD/CAD signal by Option Banque

From 0.98300
Till 0.97800

Sell Option Digital
Direction Put
Expiry GMT 21:00 13/12/2016

 

[Option_Banque]

Dow Jones Trade Idea by Option Banque

Dow Jones Sets New Record, Attempting 20,000 Threshold

U.S. shares set a new round of intraday records on Tuesday with Dow Jones Industrial Average nearing the 20,000 milestone ahead of the Federal Reserve’s two-day meeting stating today.

The benchmark jumped more than 0.6 percent to 19,940, heading for a seventh-straight session of gains. The rally was led by shares of International Business Machines Corp., Nike Inc. and Apple Inc. which rose more or less than 2 percent each. Indeed, at the time of writing, International Business Machines Corp. added 2.37%, Nike Inc. gained 1.85% and Apple Inc. climbed 2.15%.

Investors are focusing on the Fed’s coming interest-rate decision which is widely expected to witness a change by a quarter percentage point. Markets will also closely scrutinize the Fed’s President Janet Yellen’s remarks for clues to the central bank’s plans for 2017.

Trade suggestion
Buy Digital Call Option from 11,950.00 to 20,000.00 valid until 20:00 GMT December 14, 2016

 

[Option_Banque]

Daily Report on December 14, 2016 by Option Banque

Daily Report on December 14, 2016



Global shares were cautious ahead of the U.S. presumed second rate hike in the last ten years later Wednesday. The MSCI Asia Pacific Index edged 0.1 percent higher with Australia’s S&P/ASX 200 Index rising 0.7 percent. Hong Kong’s Hang Seng Index was also a rise but Japan’s Topix and the Shanghai Composite Index dropped 0.1 percent and 0.5 percent, respectively. European equities opened lower while U.S. futures indexes declined.

The U.S. dollar swung between gains and losses before the Federal Reserve’s expected interest-rate increase announced in late U.S. session. The greenback may have a muted reaction to the Fed’s decision to make a change to its key rates but will vacillate in a much wider range following Chair Janet Yellen’s subsequent press conference.

Crude oil fell on Wednesday on the back of a report that showed an unexpected climb in U.S. crude supplies for the week ended Dec. 9. The American Petroleum Institute late Tuesday post an increase of 4.7 million barrels in U.S. stockpiles last week, contrasting to forecasts calling for a stockpile decline of 1.7 million barrels by economists. Government’s official data will be released later today.

The Bank of Japan "tankan" survey published on Wednesday found big Japanese manufacturers' sentiment improved for the first time in six quarters to hit a one-year high while service-sector confidence was unchanged from three months ago. Falls in the yen and a pick-up in overseas growth brought the index measuring big manufacturers' business sentiment to plus 10 from plus 6 three months ago, which is the highest level since December 2015.



Technicals

GBPCHF



Fig: GBPCHF H4 Technical Chart

GBPCHF has broken below a couple of moving averages following a retreat from the resistance at 1.28880. The pair is likely to extend its downtrend after falling into a correction at around 1.27850. RSI index which is below 50 and is pointing down signals a strengthening bearish force.

Trade suggestion

Buy Digital Put Option from 1.27800 to 1.27000 valid until 20:00 GMT December 14, 2016



Natural Gas



Fig: Natural gas H4 Technical Chart

Natural gas has been on a decline since the start of this week. The steady downtrend has sent the price to the lowest level since December 02nd. While the RSI index that gauges that relative strength between buyers and sellers are sliding, signaling a strengthening bearish momentum. The short-term MA20 has crossed over the long-term MA50 from above, suggesting further declines.

Trade suggestion

Buy Digital Put Option from 3.445 to 3.360 valid until 20:00 GMT December 14, 2016



SILVER



Fig: SILVER H4 Technical Chart

Silver bounced back after failing to broken below the short-term MA20. The price action has also crossed over the long-term MA50, which confirms a reversal into an uptrend. The RSI index has moved past the central line, supporting further advances. The metal may attempt the resistance at 17.200.

Trade suggestion

Buy Digital Call Option from 17.055 to 17.200 valid until 20:00 GMT December 14, 2016



DAX 30



Fig: DAX 30 Index H4 Technical Chart

Germany’s DAX 30 index rebounded from the 11300.00 threshold after a sharp rise that brought the market into the overbought zone. Profit taking has just helped send the market escape from the overblown state. However, the short-term MA20 may continue to support the bullish force, signaling a rebound around 11150.00.

Trade suggestion

Buy Digital Put Option from 11250.00 to 11150.00 valid until 20:00 GMT December 14, 2016

 

[Option_Banque]

AUD/NZD signal by Option Banque

From 1.03700
Till 1.03500

Option Digital
Direction Put
Expiry GMT 21:00 14/12/2016

 

[Option_Banque]

Crude Trade Idea by Option Banque

Crude Prices Keep Declining Despite A Draw In U.S. Inventories

Oil futures recovered from some of their earlier losses on Wednesday following weekly report from the U.S. government that showed a draw in domestic crude inventories.

The U.S. Energy Information Administration on Wednesday reported crude oil inventories of the country fell for a fourth week in a row, retreating by another 2.6 million barrels for the week ended Dec. 9. The EIA’s report has dispelled concerns over rising output from the U.S. on the back on soaring oil price as the API on Tuesday had posted nearly 5 million barrel build expectation.

However, price remained weak as data from the Organization of the Petroleum Exporting Countries and the EIA both showed record output of the group in November.

Trade suggestion
Buy Digital Put Option from 51.80 to 51.50 valid until 20:00 GMT December 15, 2016

 

[Option_Banque]

USDCHF Market Outlook by Option Banque

Monetary Policy Divergence Between FED And SNB Sends USDCHF To Multi-Month High

USDCHF took off to the highest level since late January on Thursday after the Federal Reserve officials on Wednesday raised interest rates for the first time since last December and forecast a more aggressively economic tightening program for 2017.

The pair soared around 1.5% from 1.0103 to 1.0255, the level not seen since January 29th, after the U.S. central bank lifted its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent. According to a statement following a two-day meeting in Washington, the Federal Open Market Committee cited “realized and expected labor market conditions and inflation” as reason for this time’s rate hike.

The Fed is widely believed to shift from easing monetary policy toward a tightening territory, as its two main goals which are inflation and labor are moving towards its target. While inflation expectations have increased “considerably”, the labor market is tightening. The central bank stated that it expects three rate increases in 2017, up from two in its September forecasts.

On the other hand, the Swiss National Bank kept interest rates unchanged on Thursday at record low levels to keep a lid on the “significantly overvalued” Swiss franc. Given political uncertainties including upcoming elections in several countries in the euro area and the exit negotiations between the UK and the EU presumed to be triggered next March, the Swiss franc has strengthened against its major peers. A strong franc is considered to be negative for Switzerland’s export-based economy, as it pushes up the price of Swiss products and slashes profit margins of companies.

The SNB expects its willingness to intervene in the foreign exchange market will make Swiss franc investments less attractive and thus curb the demand for the currency. The divergence in monetary policies between the U.S. Fed and the SNB may send the pair higher.

Fig: USDCHF D1 technical chart

Trade suggestion
Buy Digital Call Option from 1.02500 to 1.03000 valid until 20:00 GMT December 16, 2016