Currencies
- The euro commenced this week’s trading with a drop to 1.2665, recording a new 23-month low, against the US dollar. The single currency remains under pressure as the German monthly Preliminary CPI will be announced today and is expected to drop by 0.1%.
- The US dollar reached a new six-year high against the Japanese yen (JPY) at 109.65 earlier in the morning. The greenback carries on strengthening as US economy seems to recovering faster. Today, the monthly US Pending Home Sales will be announced and they are expected to drop by 0.4%.
Equities
- US equities dropped on Friday as investors snapped up profits before third quarter closes. The US 500 fell to 1970; the Dow went to 16983 and the NASDAQ Composite to 4037.
Commodities
- WTI Crude Oil fell to 92.94, as concern about the oil supply because of Middle-East trouble eased.
Mover And Shaker With Forex Options
- Euro appeared range bound around its lowest point since July 2014 against British pound (GBP). Pound strengthened as Carney stated that a rise in UK interest rates is getting closer. Today, the number of new UK Mortgage Approvals will be announced with expectations at 66K.
- Option traders may consider buying a Put on the EUR/GBP and gain if the pair moves lower, while the risk is limited to the premium paid.