Currencies
- The euro (EUR) fell to 1.3825 from 1.3919 during yesterday’s FOMC statement. As QE tapering continues for the third month, Fed Chairman Janet Yellen stated that a potential rate hike may be possible by next year.
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The US dollar (USD) spiked higher on Yellen’s rate hike comments against the Japanese yen (JPY). The pair has moved from 101.50 to above 102.63 last night while it has remained above the 102.20 level in today’s early trading.
Equities
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The UK 100 (FTS) index reflected US exchanges when it fell on FOMC comments of rising interest rates. The UK benchmark fell to 6463 before correcting to 6486 on yesterday’s close.
Commodities
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WTI crude (OIL) continues its rally bushing above 99.45 dollars per barrel. Energy prices are tested this week after Russia’s annexation of the Crimea as global energy dependencies are revaluated.
Mover & Shaker with FX Options
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As expected Gold (XAU) continued to slide since the beginning of the week. The precious metal came under further pressure from yesterday’s FOMC meeting touching 1326 before correcting to 1330 overnight. The precious metal has lost more than sixty dollars over the past week.
- Options traders may consider constructing a Bear Put Spread.
- A bear put spread can be constructed by purchasing an at-the-money Put and selling an out-of-the-money Put.
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