Currencies
- The euro dropped yesterday down to 1.3512 against the dollar. The single currency has formed its resistance at 1.3545 and support at 1.3500 while edging lower.
The dollar rose from 101.19 towards 101.50 against the yen. The monthly US CPI and the US Existing Home Sales are coming ahead with expectations of at 0.2% and 4.98M respectively.
Equities
Asian equities advanced earlier today as investors believe that the tensions in Ukraine won’t hurt the global economic growth. The FTSE Hong Kong recorded 7 months high at 23608, the Nikkei 225 went up to 15407, HS CHINA 50 to 6790 and FTSE RAFI India 50 towards 7743.
Commodities
US Corn is currently trading near its four year low at 363 USD cents per bushel as the supply increases due to favourable weather in the US.
Mover & Shaker with FX Options
Gold remains volatile and is now trading near 1307 US dollars an ounce, as investors are weighting the tensions in Gaza and Ukraine against the strong US dollar.
- Option traders may consider constructing a Back Spread Strategy with Puts on the XAU/USD 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 Put while buying an out of the money Put at double amount.
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