Currencies
- The euro (EUR) dropped down to its 14-month low at 1.2763 against the US dollar (USD). The single currency fell below 1.28 as German Business Confidence declined more than expected amid speculation that the ECB may add further stimulus measures.
- The US dollar (USD) climbed all the way up to 109.33 from 108.48 against the Japanese yen (JPY). The yen depreciated further as Japan’s target is to increase inflation up to 2%, while at the moment it failed to boost export volumes.
Equities
- The US indices rallied as the US New Home Sales came out better than expected, adding to the US economic growth. The US 500 (SPI) climbed from 1970 up to 1992 and the US Tech (NDQ) rose from 4032 up to 4089.
Commodities
- Natural Gas (NGS) climbed from 3.791 up to 3.969 US dollars per mmBTU. The energy rose as today the Energy Information Administration will reveal how many cubic feet held in the underground storage for the commodity, as expectations are at 98 Billion cubic feet.
Mover & Shaker with forex options
- The New Zealand Dollar (NZD) recorded a yearly low at 0.7982 against the US dollar (USD). The kiwi dropped below 80 cents after the Governor of the Reserve Bank of New Zealand (RBNZ) stated that the currency level cannot be justified and is unstainable. We may see an intervention from the RBNZ in the near term and the pair may move even lower.
- Option Traders may capitalize on the bearish momentum of the NZDUSD and purchase a PUT with the risk limited to the premium paid.
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