US debt deal before Thursday


Currencies

  • The euro (EUR) hit a weekly high at 1.3597 against the US dollar (USD) and is now trading around 1.3562. The Europe crawls to get out of the debt crisis while the US is threatening by a possible default.
  • The US dollar (USD) climbed to a two week high at 98.70 versus the Japanese yen (JPY). The pair made a rally, while the US senate leaders are trying to reach to an agreement before Thursday.

Equities

  • US equities continues to rise for a second day on speculation that the US lawmakers could reach a deal before Thursday. The US 500 (SPI) rose from 1680 all the way up to 1709. It looks that the index may continue to rise as the days ahead are crucial.

Commodities

  • Crude Oil (WTI) swings between gains and losses and is trading between the levels of 101.00 and 102.50.  All eyes are on the US government shutdown and a possible solution may pave the way towards higher levels.

Mover & Shaker with FX Options

  • The Australian dollar (AUD) skyrocketed more than 130 pips, climbing up to 0.9538 against the US dollar (USD) and touched its highest level since June. The Reserve Bank of Australia (RBA) released the monetary policy meetings today, signalling the intention not to reduce interest rates further.

  • Option traders may benefit from this move by purchasing at-the-money CALLs on AUDUSD, with risk limited to the premium paid in the event we see a reversal of the bullish trend .

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