Currencies
- The euro (EUR) climbed from 1.3601 up to 1.3646 yesterday against the US dollar (USD). The single currency reached a weekly high as FOMC Meeting minutes kept a dovish tone in a statement that was lacking of any large surprises.
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The US dollar (USD) advanced up to 101.85 before retracing back to 101.51 against the Japanese yen (JPY) after the FOMC Meeting minutes, as Fed didn’t show signs of increasing the interest rates earlier than expected. The US unemployment data will be announced at 12:30 GMT, with expectations at 316K unemployed individuals.
Equities
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European equities remain under pressure as, the Germany 30 (DAX) closed at 9823, the EU Stocks 50 (ESX) closed at 3206 and the France 40 (CAC) at 4364.
Commodities
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Corn (CRN) reached four 4-year low at 3.88 USD per bushel as the US which is the biggest exporter will boost global stockpiles.
Mover & Shaker with FX Options
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British Pound (GBP) rose up to 1.7166 against US dollar (USD) and is approaching near its 6-year high. The UK Official Bank Rate will be announced today, as UK is heading towards better economy.
- Option traders may consider constructing a Long Straddle on the GBPUSD 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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Editors’ Picks
EUR/USD flirts with daily tops near 1.0730
The continuation of the selling pressure in the Greenback now lends further oxygen to the risk complex, encouraging EUR/USD to revisit the area of daily highs near 1.0730.
USD/JPY looks stable around 156.50 as suspicious intervention lingers
USD/JPY remains well on the defensive in the mid-156.00s albeit off daily lows, as market participants continue to digest the still-unconfirmed FX intervention by the Japanese MoF earlier in the Asian session.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
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