Currencies
- The euro (EUR) rose from 1.2858 to 1.2940 against the US dollar (USD). The single currency recorded its biggest gain since July after hitting a new 14-month low. Today the French monthly Industrial Production will be announced with expectations to drop by 0.4%.
- The US dollar (USD) rose to a new 6-year high against the Japanese yen (JPY) at 106.45. The Japanese yen fell as the monthly Core Machinery Orders were worse than expected at 3.5% while the expectations were at 4.1%.
Equities
- US equities fell yesterday while US Tech (NDQ) rose near its all-time high at 4110, as Apple revealed their new products, before retraced back to 4052. The US 500 (SPI) dropped to 1983 and the US 30 (DOW) went to 16983.
Commodities
- Gold (XAU) fell to a three-month low yesterday at 1247 as investors seek for riskier assets rather than the safe haven.
Mover & Shaker with forex options
- The Australian Dollar (AUD) crashed against the US dollar (USD) to 0.9159, as it dropped below the 200-day moving average while the NAB Business Confidence dropped from 10 to 8. Aussie is still under pressure as the Australian Unemployment Rate and the Employment change will be announced with expectations lying at 6.3% and 15.2K new jobs.
- Option traders may consider constructing a Back Spread Strategy with Puts on the AUDUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
- A Back Spread Strategy with Puts can be constructed by selling an at the money Puts while buying an out of the money Puts at double amount.
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EUR/USD retreats below 1.0700 as USD rebounds
EUR/USD lost its traction and retreated slightly below 1.0700 in the American session, erasing its daily gains in the process. Following a bearish opening, the US Dollar holds its ground and limits the pair's upside ahead of the Fed policy meeting later this week.
USD/JPY recovers toward 157.00 following suspected intervention
USD/JPY recovers ground and trades above 156.50 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, the Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
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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