Currencies
Risk Warning : 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. Please refer to our full risk disclaimer.
- The euro (EUR) continues its slide towards 1.3163 after a minor correction. The single currency is expected to come under pressure this afternoon as the ECB President Mario Draghi will speak after interest rates are expected to remain unchanged.
- A stronger US dollar (USD) continues its gains against the Japanese yen (JPY) moving above 99.85. The Japanese yen may subside further if the Bank of Japan press conference manages to convince investors of its will to bring down the yen and pump up inflation.
- Gold (XAU) is moving lower at 1382 dollars per ounce. The precious metal could see a boost today should US unemployment figures come out worse than expected. As long as unemployment is persistent, the US Fed may be reluctant to start tapering as soon as was thought.
- Looking at a weaker euro, many option traders will be buying Puts on the EURUSD while minimizing their cost by selling Puts out of the money. This limits the upside potential but keeps premiums on cheap.
- Alternatively, investors are looking to protect their short spot positions on gold by buying Gold Calls. This way should the market fall they gain from their spot while if it raises their losses are capped from the gains of the option.
- The US 500 (SPI) moves higher touching 1655 as fears surrounding the Syrian conflict have somewhat calmed. Markets however will be cautious of any new developments regarding America’s stance.
- WTI Crude (OIL) has subsided to 106.75 before correcting to 107.35 dollar per barrel. Energy prices have seen an increase in volatility as the Syrian conflict unfolds and various scenarios are weighted in by investors.
Risk Warning : 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. Please refer to our full risk disclaimer.
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