Currencies
- The euro (EUR) recovered part of its loses yesterday against the US dollar (USD). The single currency climbed from its weekly low at 1.3575 towards 1.3604 awaiting for more news to come out.
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The US dollar (USD) fell yesterday from 102.20 down to 101.68 against the Japanese yen (JPY). The pair dropped as US equities fell from their record highs and after Japan’s bigger than anticipated surplus on Current Account.
Equities
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European equities downsized yesterday. The Germany 30 (DAX) dropped from 10020 down to 9902, the EU Stocks 50 (ESX) went down to 3227 and the France 40 (CAC) reached its monthly low at 4402.
Commodities
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Soybeans (SOY) crashed yesterday at the opening after the US Bank Holiday recording six month low at 1270 USD cents per bushel. Soybeans fell as supply increased, boosting cooking oils imports towards record in the biggest palm buyer.
Mover & Shaker with FX Options
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Gold (XAU) dropped from 1319 to 1311 before rebounding back to 1317 US dollars per ounce. Gold is retreating from the three-month high as investors considered the timing of US interest rates.
- Option traders may consider constructing a Long Straddle on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle can be constructed by buying an at the money Put and an at the money Call.
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GBP/USD declines below 1.2550 following NFP-inspired upsurge
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