Currencies
- The euro remains range bounded near its lowest point in the last 8-months against the dollar at 1.3437. The single currency remains under pressure despite the bad data from the monthly US Pending home sales.
- The dollar rose against the yen towards 101.97 earlier in the morning as the Japanese Unemployment rate was higher than expected at 3.7% and the yearly Japanese retail sales decreased more than expected at 0.6%.
Equities
- US equities crashed yesterday as monthly US Pending home sales were worse than expected before they rebound back. The S&P 500 went to 1972, the Dow 30 to 169916 and the US Tech (NDQ) to 3958.
Commodities
- WTI Crude Oil continues its bearish trend around 101.40 before supply data which may increase fuel demand.
Mover & Shaker with forex options
- The Kiwi fell earlier in the morning against the yen despite worse than expected Japanese Unemployment claims. The pair is currently trading at 86.783.
- Option traders may consider constructing a Back Spread Strategy with Puts on the NZD/JPY 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.
Disclaimer: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose.