Currencies
- The euro (EUR) rose earlier this morning against the US dollar (USD) as the ECB stress test for the European banks were better than expected. Only 25 banks failed the test, but few of them need additional. Today the German Ifo Business Climate will be announced and is expected to be at 104.6.
- The US dollar (USD) dropped to 107.94 earlier this morning against the Japanese yen (JPY) as the US economy seems to recover faster than the other economies. The greenback continues to strengthening against most majors peers before FOMC Statement this week. Today the monthly US Pending Home Sales will be announced and is expected to rise by 1.1%..
Equities
- US equities gained on Friday as the drop in oil prices boosting production. The US 500 (SPI) advanced to 1959, the US 30 (DOW) went to 16735 and The US Tech (NDQ) to 4037.
Commodities
- WTI Crude (OIL) fell from 81.84 to 80.34 USD per barrel on Friday as the inventories continue to be very high, while the demand for oil drops.
Mover & Shaker with forex options
- Gold (XAU) dropped from 1244 to 1226 as investors believe that Federal Reserve Bank will stop buying bonds this week, while the European banks passed the stress test, cutting the demand for the safe haven and seeking to invest in more riskier assets.
- Option traders may consider buying a Put on the XAUUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
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