Currencies
- The euro (EUR) climbed from 1.2383 up to 1.2485 against the US dollar (USD) on Friday. The single currency advanced after several officials of the ECB diluted the hopes for quantitative easing in the Eurozone. As a result, the euro continues strengthening as there are no improvements in the European economy.
- The US dollar (USD) slid down to 117.77 against the Japanese yen (JPY) early in the weekly session. The yen gained ground after the elections in Japan and Shinzo Abe gained more than two-thirds of the seats and he is promising about a fresh mandate of policies.
Equities
- US equities slumped as the drop of oil prices signals weakness for global economic growth. The US 500 (SPI) dropped down to 1994, the US 30 (DOW) declined to 17228 and the US Tech (NDQ) fell to 4182.
Commodities
- WTI Crude (OIL) continues the downside and reached a new low at 56.25 US dollars per barrel. The Crude Oil tumbles as the UAE stated that OPEC may not reduce production even if prices reached 40 US dollars per barrel.
Mover & Shaker with forex options
- Gold (XAU) declined down to 1213 US dollars per barrel ahead of the FOMC statement on Wednesday. The Federal Reserve meets this week and main discussion will be about a possible hike on interest rates. The language of the Fed officials may prove determining for the direction of the metal.
- 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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