Daily Market Updates & Trading Signals By Option Banque

[Option_Banque]

EUR/CAD signal by Option Banque

From 1.39350
Till 1.38800

Option Digital
Direction Put
Expiry GMT 21:00 15/12/2016

 

[Option_Banque]

Daily Report on December 15, 2016 by Option Banque

Daily Report on December 15, 2016



The U.S. dollar marched broadly higher versus all of its peers on Thursday after the Federal Reserve decided to make a change on its rates and boosted the outlook for the interest rate policy in coming years. The dollar index soared nearly 0.8% to 103.00, the highest level since early 2003 in early U.S. session.

The U.S. central bank hiked its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent on Wednesday, updating its forecast of median fed-funds rate to 1.4% by the end of 2017, 2.1% at the end of 2018 and 2.9% in 2019.

This means that there will be three quarter-percentage-point interest-rate increases over each of the next three years. This pace is faster than what was forecast in September, when there were only two rate increases next year projected.

Meanwhile, the Bank of England held its key interest rate unchanged on Thursday, warning about slower pickup in inflation next year due to recent appreciation in the British Pound. In its latest and final policy decision of 2016, the Monetary Policy Committee, led by Governor Mark Carney, voted unanimously to keep the benchmark rate at 0.25 percent as well as keep its two asset-purchase programs running intact.

Earlier on the day, the Swiss National Bank also kept interest rates unchanged 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.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has been trading sideways to lower below the 38.2% Fibonacci level at 0.83950. The pair has also been under downwards pressure from the two moving averages that are hanging above the price action. These two MAs contributed to restraining the bullish force and damping the price lower. With RSI indicating overwhelming bearish momentum, EURGBP may attempt the support at 0.83000.

Trade suggestion

Buy Digital Put Option from 0.83500 to 0.83000 valid until 20:00 GMT December 15, 2016



NZDUSD



Fig: NZDUSD H4 Technical Chart

NZDUSD has broken out of an upwards slopping trendline to fall as low as 0.70500 – the level not seen since the start of December. The price action has also crossed over two MAs, suggesting a reversal into a downtrend. Although the market has entered the oversold zone, as indicated by the RSI index, the ADX index is soaring, signaling further declines.

Trade suggestion

Buy Digital Put Option from 0.70400 to 0.70000 valid until 20:00 GMT December 15, 2016



SILVER



Fig: SILVER H4 Technical Chart

Silver dropped steeply below the 61.8% Fibonacci level and even peeking out of the firm support at 16.000. The metal’s slide has sent the market into the oversold zone, as can be observed by two indicator windows. The pair bounced back after falling under 16.000 due to profit taking but the downtrend may bring the price to as low as 15.800.

Trade suggestion

Buy Digital Put Option from 16.000 to 15.800 valid until 20:00 GMT December 15, 2016



FTSE 100 Index



Fig: FTSE 100 Index H4 Technical Chart

FTSE 100 Index is struggling around the 6973.00 level after consistently failing to break above this level lately. In general, the price has been on an uptrend, which is indicated by higher lows formed in the price action. The short-term MA20 is another support for the bullish momentum. The index is anticipated to approach the 7000.00 milestone.

Trade suggestion

Buy Digital Call Option from 6975.00 to 7000.00 valid until 20:00 GMT December 15, 2016

 

[Option_Banque]

Euro Hits The Lowest Since Early 2003 In The Wake Of FED’s Decision

In the aftermath of the event that the U.S. Federal Reserve (FED) announced its first interest-rate increase of 2016 on Wednesday, the greenback extended its strong rally versus all of its peers including the euro on Thursday.

The pair EURUSD hit fell more than 1.3% to an intraday nadir of $1.03984 – the lowest level for more than a decade as the Fed had signaled a more aggressive outlook for interest rate policy in coming years. After hiking its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent, the central bank stated that it expected the median fed-funds rate to be 1.4% by the end of 2017, soaring to 2.1% at the end of 2018 and 2.9% in 2019.

This means that there will be three quarter-percentage-point interest-rate increases over each of the next three years. This pace is faster than what was forecast in September, when there were only two rate increases next year projected.

Trade suggestion
Buy Digital Put Option from 1.04100 to 1.03700 valid until 20:00 GMT December 16, 2016

 

[Option_Banque]

Daily Report on December 16, 2016 by Option Banque

Daily Report on December 16, 2016



The dollar halted its weekly climb on Friday, retreating nearly 0.1% to 103.00 versus a basket of six major currencies. Meanwhile, Asian shares pared some of their weekly drop with European stocks were little changed in early trading. Indeed, the MSCI Asia Pacific Index advanced 0.2 percent, curbing its decline in the week to 1.8 percent. This marked the worst weekly performance since September of the benchmark.

Japan’s Topix rose 0.5%, extending its rally to the sixth straight week. The steady advance has sent the index 1.7% higher, erasing its loss for 2016. Adding to the upbeat moves, China’s Shanghai Composite Index rose 0.2 percent, trimming its biggest weekly drop in eight months. Elsewhere, the Stoxx Europe 600 Index was little changed as of 8:24 a.m. in London, up 0.9 percent for the week.

According to the state-run Securities Daily, China’s central bank has pumped 600 billion yuan into the financial system over the past two days in an attempt to stabilizing the bond and stock markets. The move came as a result of an unprecedented plunge of the bond futures market that triggered a temporary trading halt yesterday.

On the government debt market, yields on Japanese bonds due in a decade advanced as much as 1 and 1/2 basis points to 0.10 percent. In the U.S., Yields on benchmark 10-year treasury notes inched two basis points lower at 2.58 percent, set for their steepest weekly advance in a month after touching their highest level since September 2014.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has broken above the 38.2% Fibonacci level at 0.83950. The pair has also penetrated both the short-term MA20 and the long-term MA50, confirming the uptrend. As RSI index is indicating stronger buyers in the market, the currency pair may approach the resistance at 0.84700.

Trade suggestion

Buy Digital Call Option from 0.84300 to 0.84700 valid until 20:00 GMT December 16, 2016



EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD had to give up its bullish strength after hitting the long-term moving average at 1.41400. The pair had rebounded from the 50.0% Fibonacci level and the appreciation sent the %K line into the overblown market. As the %K line has reversed lower and is about to cross over the %D line from above, the pair may fall further to the support at 1.41600.

Trade suggestion

Buy Digital Put Option from 1.42000 to 1.41600 valid until 20:00 GMT December 16, 2016



WTI



Fig: WTI H4 Technical Chart

U.S. crude price resumed its down moves following a correction that sent the price to as high as 51.45. Two moving averages hanging above the price action are putting downward pressure on the commodity price, showing signs of a continual downtrend.

Trade suggestion

Buy Digital Put Option from 50.50 to 49.60 valid until 20:00 GMT December 16, 2016



SP500 Index



Fig: SP500 Index H4 Technical Chart

SP500 index is likely to retest the all-time record high level at 2277.35. The index is heading upwards after a correction from the 0.0% Fibonacci level. As can be observed from the RSI chart, the market is in a bullish zone, suggesting further upbeat moves.

Trade suggestion

Buy Digital Call Option from 2265.00 to 2277.00 valid until 20:00 GMT December 16, 2016

 

[Option_Banque]

GBP/JPY signal by Option Banque

From 147.000
Till 148.000

Buy Option Digital
Direction Call
Expiry GMT 21:00 16/12/2016

 

[Option_Banque]

Crude Trade Idea by Option Banque

Russian Producers To Comply Output-Cut Deal, Supporting Crude Prices

Crude oil futures advanced on Friday, spurred by a weakening U.S. dollar and reports indicate that major oil producers will comply with recent agreements to reduce their oil production.

Brent crude soared 1.7% to nearly $55 per barrel after Russian Energy Minister Alexander Novak stated today that all Russian oil companies including state-controlled Rosneft had agreed to trim their crude oil output on the back of the agreement Russia signed with the Organization of Petroleum Exporting Countries over the last weekend.

Before that, Kuwait and Saudi Arabia have also notified customers that they will cut beginning in January.

Trade suggestion
Buy Digital Call Option from 55.00 to 55.40 valid until 20:00 GMT December 16, 2016

 

[Option_Banque]

Dollar Remains Strong Against Euro And Gold, BOJ Meeting Expected

Dollar Remains Strong Against Euro And Gold, BOJ Meeting Expected

The U.S. dollar’s bull ran out of steam on Friday when the currency retreated from a 14-year high on Friday following a rally coming after Fed’s first rate hike in a year. The U.S. dollar index edged lower against a trade-weighted basket of six major currencies, but remained near Thursday’s peak of 103.55, a level not seen since December 2002.

For the week, the index soared around 1.3% as the U.S. Federal Reserve increased its benchmark rates by 0.25 percentage point on Wednesday and signaled a prospect of a more-aggressive rate-hike path in 2017. The central bank’s President Chair Woman Janet Yellen stated that the Fed may raise rates more quickly than previously anticipated with three rate increases in 2017, which is up from the two hikes predicted in September.

In the week ahead, there will be not much in the way of U.S. data but the release of Thursday’s final reading on U.S. third quarter gross domestic product. Market players will be eyeing fresh indications on the strength of the economy and further hints on the future path of monetary policy.

Closing the week, the Japanese Yen fell to 117.97 per dollar, trimming its losses to 2.2% on the week after dropping to Thursday’s 11-month trough of 118.65. The Bank of Japan is expected to hold its negative interest rates and 10-year government bond yield target steady at its monetary policy meeting on Tuesday.

Also on Tuesday, the Reserve Bank of Australia is scheduled to publish the minutes of its latest monetary policy meeting. Investors will be looking for insight into how the RBA’s officials view the economy and their policy options.
Last week was also a big loss for the euro when the single currency plummeted more than 1% and fell as low as 1.0365, the weakest level since January 2003. The pair EURUSD rebounded on Friday, finishing the week at 1.0450.

Gold prices recorded its sixth straight weekly decline on Friday, weighed by expectations for higher U.S. interest rates in the months ahead. Gold for February delivery on the Comex division of the New York Mercantile Exchange ended its last session of the week at $1,137.40 a troy ounce, pulling back from $1,124.30 logged on Thursday, a level not seen since February 2.

 

[Option_Banque]

USD/JPY signal by Option Banque

From 117.000
Till 116.000

Option Digital
Direction Put
Expiry GMT 21:00 19/12/2016

 

[Option_Banque]

FTSE Trade Idea by Option Banque

FTSE 100 Trims Losses After Sagging In Early Trade

U.K. shares pared losses after opening lower in early trade on Monday, as declines among metals producers overshadowed gains in shares of oil producers. The FTSE 100 index retreated 0.2% after finishing last week at 7,011.64, the highest close since Oct. 25.

Metal prices fell on Monday following data from China that showed growth of housing prices slowed down in November from the month before. According to the report from the National Bureau of Statistics, China’s average price of new homes in 70 cities rose 0.6% in November compared to a 1.1% gain in October thanks to the government’s stringent property-buying controls in major cities and greater scrutiny of loans made to developers.

Mining shares struggled with Anglo American PLC losing 1.5%, Rio Tinto PLC down 1.2%. Antofagasta PLC and BHP Billiton PLC shed 1.64% and 0.46%, respectively.
Meanwhile, a firmer crude price supported stocks of oil producers. BP PLC shares gained ground, rising 0.92% and Royal Dutch Shell PLC added 0.42%.

Trade suggestion
Buy Digital Call Option from 7020.00 to 7035 valid until 20:00 GMT December 19, 2016

 

[Option_Banque]

Daily Report on December 19, 2016 by Option Banque


Daily Report on December 19, 2016



The U.S. dollar, Treasuries bond yields and global shares declined on Monday after soaring last week. Asian equities fell a four-week low with MSCI's broadest index of Asia-Pacific shares outside Japan extending its losses for the third straight day, shedding 0.3 percent. European stocks also declined as investors cashed in profit. After having reached the highest level of the year on Friday, the Stoxx 600 Index retreated, weighed by bank stocks.

The dollar index ticked lower, as heightened geopolitical tensions over China’s seizure of a U.S. naval drone magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.

Crude prices extended their gains on Monday on the back of a weakening U.S. dollar and anticipation that oil supplies will be tighter next year following the output-cut deal between OPEC and non-OPEC members. Almost 1.8 million barrels per day in global supply will be curbed from January 2017. However, U.S. producers, who did not join the production cut deal, are coming back to the market to take advantage of higher oil price. According to energy services firm Baker Hughes, drillers in the U.S. added 12 oil rigs in the week to Dec. 16, bringing the total to 510, the highest since January.

Metal prices fell on Monday following data from China that showed growth of housing prices slowed down in November from the month before. According to the report from the National Bureau of Statistics, China’s average price of new homes in 70 cities rose 0.6% in November compared to a 1.1% gain in October thanks to the government’s stringent property-buying controls in major cities and greater scrutiny of loans made to developers.

Elsewhere, Australia Treasury reported its Mid-Year Economic and Fiscal Outlook on Monday, stated that the government forecast a A$10 billion deterioration in its budget deficit over the next four years. The update has mounted concerns about a cut in the country's prized triple-A rating but S&P Global Ratings said the update had no immediate impact on the rating. Nonetheless, the rating agency still warned more revenue or saving steps would be needed to get back to surplus.



Technicals

USDCAD



Fig: USDCAD H4 technical chart

USDCAD rebounded from the 38.2% Fibonacci level at around 1.33100 and is heading upwards to the resistance at 1.34000. In a long term, the pair has been in a downtrend with lower highs formed along the way. In addition, the RSI has neared the oversold zone. Therefore, the upside seems limited.

Trade suggestion

Buy Digital Call Option from 1.33650 to 1.34000 valid until 20:00 GMT December 19, 2016



USDJPY



Fig: USDJPY H4 technical chart

USDJPY has rebounded from the short-term 20-period moving average at 117.200 after a slide that sent the market near the oversold zone. As can be seen from the stochastic chart, the %K line has crossed over the %D line from below, suggesting a potential reversal into an uptrend.

Trade suggestion

Buy Digital Call Option from 117.600 to 118.300 valid until 20:00 GMT December 19, 2016



GBPCHF



Fig: GBPCHF H4 technical chart

After falling out of an upwards slopping trendline, the pair GBPCHF attempted to get back to the uptrend. However, the one-time support has turned into a new resistance which is putting pressure on the pair. RSI has move past the 50 line, indicating a strengthening bearish momentum.

Trade suggestion

Buy Digital Put Option from 1.27500 to 1.27000 valid until 20:00 GMT December 19, 2016



WTI



Fig: WTI H4 technical chart

U.S. crude price is struggling around the resistance at 52.30 – the solid level that has been played as both resistance and support for the price since early this month. As the market has been in a bullish zone, the crude price may break above this handle and soar higher.

Trade suggestion

Buy Digital Call Option from 52.40 to 53.10 valid until 20:00 GMT December 19, 2016

 

[Option_Banque]

USDJPY Trade Idea by Option Banque

USDJPY Plummets Ahead Of BOJ’s Policy Decision

The dollar lost ground to its Japanese counterpart on Monday after six consecutive weeks of trading higher. The pair USDJPY fell nearly 1% to as low as 116.616 due to geopolitical tensions over China’s seizure of a U.S. naval drone that magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.

The Bank of Japan will hold its final meeting of the year 2016 on Tuesday. The bank is expected to leave policy unchanged as a weakening yen in the last one and a half month has helped boost Japanese exports and inflation expectations.

Meanwhile in the U.S., Federal Reserve Chairwoman Janet Yellen is due to have a speech on the job market at 1:30 p.m. EDT. Yellen’s appearance comes less than a week after the U.S. central bank decided to hike rates and indicated a faster pace of rate increases next year than had previously been expected.

Trade suggestion
Buy Digital Put Option from 117.000 to 116.000 valid until 20:00 GMT December 19, 2016

 

[Option_Banque]

Daily Report on December 20, 2016 by Option Banque

Daily Report on December 20, 2016



Asian shares declined on Tuesday amid rising political uncertainties globally. Russia’s ambassador to Turkey was shot dead at an Ankara art exhibit by a lone Turkish gunman on Monday evening. The assassination of Russia’s envoy was believed to be a backlash against Russian military involvement in the Syrian civil war. Also contributing to sapping investor confidence in risky assets is violent incidents in Germany which killed 12 people and injured 48 others. Berlin police said they didn’t have firm evidence on whether this was a deliberate attack or just an accident.

The Japanese Yen, which is considered to be one of safe-haven assets, weakened in such a fragile stock market as the Bank of Japan left its monetary policy unchanged. The central bank kept its rate on some bank reserves intact at -0.1 percent and preserved its pledge to keep the yield on the 10-year Japanese government bond at around 0 percent.

As widely expected by economists, the BOJ upgraded its assessment of the economy on Tuesday, forecasting real gross domestic product will rise 1.5 percent in the next fiscal year starting April 1, nominal growth will increase to 2.5 percent and overall consumer prices will advance 1.1 percent. However, inflation expectations will remain in a weakening phase, it said.

Crude prices ticked lower on Tuesday with U.S. West Texas Intermediate crude oil futures trading at $51.87 per barrel while International Brent crude oil futures at $54.78 per barrel, both down from their last settlements. Traders began to unwind positions ahead of the upcoming Christmas weekend and the week running up to New Year.



Technicals

AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD is moving in a thin range after falling as low as 0.72420. The pair broke out of an upwards trading range last Wednesday and has been nose-diving since then. The pair has crossed over two major Fibonacci levels at 38.2% and 50.0% and is likely to test another important support at 61.8%.

Trade suggestion

Buy Digital Put Option from 0.72400 to 0.72100 valid until 20:00 GMT December 20, 2016



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF reversed higher on the support of the short-term MA20. The pair was on a slide since it reached the high at 1.03430. Nonetheless, a short correction could not sustain its bearish momentum and had to give up its strength. Buyers have jumped in and may support the pair to re-attempt the 100% Fib. level.

Trade suggestion

Buy Digital Call Option from 1.02900 to 1.03300 valid until 20:00 GMT December 20, 2016



Natural Gas



Fig: Natural gas H4 Technical Chart

Natural gas prices are ticking downwards under pressures from the short-term 20-period moving average. At the same time, the commodity is being supported by the level at 3.360 which has prevented the price from falling lower. However, with RSI index sliding in the bearish zone and a divergence between the +DI and –DI lines, natural gas is expected to test the support at 3.260.

Trade suggestion

Buy Digital Put Option from 3.340 to 3.260 valid until 20:00 GMT December 20, 2016



SP500



Fig: Sp500 H4 Technical Chart

Sp500 index has been moving sideways to higher for nearly a week. The price action is twisting with the short-term MA20. Steady up moves have retained the market in the bullish zone, where may support the index to retest the all-time record high at 2777.35.

Trade suggestion

Buy Digital Call Option from 2267.00 to 2277.00 valid until 20:00 GMT December 20, 2016

 

[Option_Banque]

AUD/JPY signal by Option Banque

From 85.500
Till 86.000

Buy Option Digital
Direction Call
Expiry GMT 21:00 20/12/2016

 

[Option_Banque]

Gold Trade Idea by Option Banque

European Incidents Fail To Spur Gold Demand, Dollar Weighs

Gold reversed lower on Tuesday in the wake of a strengthening U.S. dollar while deadly incidents in Europe failed to bolster demand for safe-haven assets.

After having edged higher for the last two trading days, gold for February delivery fell as much as 1.18% to $1126.11 per ounce on Tuesday. The safe-haven bullion have not benefited from geopolitical jitters including assassination of Russia’s ambassador to Turkey and violence in Berlin and Zurich that killed over a dozen people and left many others injured on Monday.

The reason is that the greenback was trading near 14-year highs following Federal Reserve Chair Janet Yellen’s remarks that indicated a faster pace of U.S. interest rate rises next year than had been expected. Both higher U.S. interest rates and gains in the U.S. currency are negative for the dollar-denominated and non-yielding assets such as gold.

Trade suggestion
Buy Digital Put Option from 1126.00 to 1108.00 valid until 20:00 GMT December 20, 2016

 

[Option_Banque]

USD/CAD signal by Option Banque

USD/CAD signal by Option Banque

From 1.33700
Till 1.34000

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

 

[Option_Banque]

Daily Report on December 21, 2016 by Option Banque

Daily Report on December 21, 2016



European shares retreated on Wednesday after attempted the highest level since late December last year. The Stoxx Europe 600 index shed 0.1% in the morning session, dragged down by 0.5% decline in a gauge of European bank shares. Losses of banking stocks came in after a slew of banks from Spain, Italy and Switzerland were reported to be struggling with fines, court’s ruling and loan loss provisions.

According to a ruling by the EU Court of Justice in Luxembourg Wednesday, Spanish banks, including Banco Popular Espanol SA and Banco Bilbao Vizcaya Argentaria SA, may have to give back billions of euros to mortgage customers who paid too much interest on home loans pre-dating a May 2013. Meanwhile, Italian banks have been struggled in raising at least 52 billion euros ($54 billion) to clean up their balance sheets. Banca Monte dei Paschi di Siena, which has to add 5 billion euros of provisions, may run out of liquidity in four months, sooner than a previous estimate of 11 months, Reuter reported.

Dollar lost ground versus the euro and the Japanese Yen on Wednesday. Speaking in a conference following the Bank of Japan’s Monetary Policy Statement, Governor Haruhiko Kuroda wiped out the possibility that the central bank may soon consider raising interest rates. Kuroda also pledged to keep policy loose to achieve the BOJ's 2 percent inflation goal and stated that recent depreciation of the Yen would help accelerate inflation by boosting import costs and thus raise inflation expectations.

Crude prices were little changed even after data showed U.S. stockpiles declined last week. The American Petroleum Institute on late Tuesday reported that crude inventories in the U.S. dropped by 4.15 million barrels in the week to December 16th. Official data from the Energy Information Administration due to release later today is also anticipated to show a supply retreat.



Technicals

USDJPY



Fig: USDJPY H4 Technical Chart

USDJPY price action is on track to form a double-top pattern after the pair rebounded from the resistance at 118.300. The price has crossed over the short-term MA20 and is heading towards the neck level at 116.700 where the pair is expected to face the long-term MA50 and bounce back.

Trade suggestion

Buy Digital Put Option from 117.400 to 116.700 valid until 20:00 GMT December 21, 2016



EURAUD



Fig: EURAUD H4 Technical Chart

Euro pulled back versus the Australian dollar following a slide that sent the pair to as low as 1.42819 – the level not seen since December 16th. The bullish momentum was spurred by the dynamic support which is the short-term MA20. As can be seen from the stochastic chart, the %K line is running ahead of the %D line, suggesting further up moves.

Trade suggestion

Buy Digital Call Option from 1.43500 to 1.44000 valid until 20:00 GMT December 21, 2016



GOLD


Fig: GOLD H4 Technical Chart

Gold one more time ran out of bullish steam after the price action failed to break out of the 20-period moving average. The dynamic resistance has depressed gold price for a period of time and may send the precious metal lower to test the support at 1126.00.

Trade suggestion

Buy Digital Put Option from 1132.00 to 1126.00 valid until 20:00 GMT December 21, 2016



Natural Gas



Fig: Natural Gas H4 Technical Chart

After hitting a three-week low at 3.260, natural gas price pulled back to attempt the resistance at 3.360. ADX is heading downwards, indicating no clear trend in the market. The upside also seems limited as the short-term MA20 is hanging above the price action, suppressing the bullish force.

Trade suggestion

Buy Digital Put Option from 3.360 to 2.260 valid until 20:00 GMT December 21, 2016

 

[Option_Banque]

GBP/USD signal by Option Banque

From 1.23300
Till 1.23000

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

 

[Option_Banque]

Natural Gas Trade Idea by Option Banque

Expectation Of A Massive U.S. Supply Draw Spurs Natural Gas Demand

U.S. natural gas futures soared strongly on Wednesday after having fallen to the lowest level in nearly a month yesterday. Natural gas for January delivery on the New York Mercantile Exchange surged more than 6% to around $3.500 per million British thermal units as investors are betting on expectations of a massive U.S. inventory draw.

Natural gas futures closed last week lower due to forecasts for less cold weather which tends to result in lighter heating demand through the end of the year. However, economists expect weekly supply data due on Thursday will show a draw in a range between 197 and 210 billion cubic feet in the week ended December 16. If confirmed, it would be the biggest weekly withdrawal since 2010 and far exceeding last week’s decline of 147 billion cubic feet.

Trade suggestion
Buy Digital Call Option from 3.500 to 3.550 valid until 20:00 GMT December 22, 2016

 

[Option_Banque]

EUR/AUD signal by Option Banque

EUR/AUD signal by Option Banque

From 1.44400
Till 1.44800

Buy Option Digital
Direction Call
Expiry GMT 21:00 22/12/2016

 

[Option_Banque]

Crude Trade Idea by Option Banque

Crude Steady As Weak Dollar Offsets Supply Surge Threats

Crude oil futures were steady on Thursday, supported by a weaker U.S. dollar but gains in the U.S. stockpiles last week and potential increase in Libya’s output clouded bullish momentum.

On the one hand, the U.S. dollar index, which measures the U.S currency against a basket of six major currencies, was down nearly 0.1% to 102.90. As crude price is denominated by the greenback, a weakening dollar tends to cause oil more affordable for foreign traders.

On the other hand, the Energy Information Administration on Wednesday reported a surprise buildup in U.S. inventories last week. According to the weekly report, U.S. crude stocks rose by 2.3 million barrels in the week ended Dec. 16, contrasting with market expectations calling for a decrease.

In addition, Libya’s state-run National Oil Co. stated that its long-closed pipelines, which could supply 270,000 barrels a day of crude in the next three months, had reopened.

Trade suggestion
Buy Digital Put Option from 52.30 to 51.80 valid until 20:00 GMT December 22, 2016