Currencies
- The euro (EUR) rebounded from its yearly low at 1.3109 up to 1.3159 against the US dollar (USD). The single currency is on the bearish side as the European Central Bank (ECB) meets today and there is anticipation that Mario Draghi may announce further policy measures in order to support the European economy.
- The US dollar (USD) slid from its nine month high down to 104.73 against the Japanese yen (JPY). The yen erased some of its losses as the US ADP Non-Farm payrolls due at 12:15 GMT and expectations are at 218K added jobs. A better than expected figure may support the US economic growth and boost the expectations that the Fed may increase interest rates soon.
Equities
- The US indices hit new record highs before the retracement yesterday. There are a lot of signs of economic recovery in the US and investors are shifting towards more risky assets. Highlighting the major indices, with the US 500 (SPI) climbed up to 2010, the US 30 (DOW) rose up to 17150 and the US Tech (NDQ) increased up to 4113 before the drop back to 4062.
Commodities
- WTI Crude (OIL) rebounded from its low at 92.67 all the way up to 95.86 US dollars per barrel. The energy climbed ahead of the Crude Oil inventories release due at 15:00 GMT and with expectations of -0.9 Million Barrels held in inventory.
Mover & Shaker with forex options
- The British Pound (GBP) collapsed down to its eight month low at 1.6438 against the US dollar (USD). The cable lost more than 200 pips from the beginning of the weekly session as there are concerns over the Scottish independence that overshadowed the better than expected services PMI data.
- Option traders may consider constructing a Bear Put Spread on the GBPUSD and gain if the pair continues the downside, while the risk is limited to the premium paid.
- A Bear Put Spread can be constructed by buying an in the money Put while selling an out of the money PUT.
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