Currencies
- The euro (EUR) rose from 1.3587 all the way up to 1.3622 against the US dollar (USD). The single currency advanced ahead of the FOMC meeting minutes and on speculation that the US economy remains uneven.
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The US dollar (USD) continues the downside against the Japanese yen (JPY) and dropped down to 101.44. Yen’s appreciation is driven by the weakness of the dollar and looking ahead the pair might move even lower.
Equities
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The global equities continues the downsize for another day as investors are looking for an alternative and safer investment. The France 40 (CAC) trades near its three month low after the Air France Group announced a cut on its yearly profit forecast.
Commodities
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WTI Crude (OIL) fell down to its monthly low at 103 US dollars per barrel, on speculation that crude oil inventories might come out higher than expectations. On the calendar, the US Crude Oil Inventories will be revealed at 14:30 at forecast is -1.7 million barrels.
Mover & Shaker with FX Options
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Gold (XAU) declined down to 1313 before the retracement up to 1324 US dollars an ounce. The precious metal rose as the equities fell and the greenback is under pressure across the board.
- 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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