Currencies
- The euro continues the downside with losing around 150 pips against the US dollar, from the beginning of the weekly session. Market participants building up their positions after the ECB expanded its stimulus measures last week, while the pair is now trading around 1.3542.
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The US dollar moved lower and formed a new support at 102.20 against the Japanese yen. The yen advanced as the Bank of Japan (BoJ) meets this Friday, where anticipations show that Haruhiko Kuroda may refrain from adding more stimulus measures.
Equities
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Hong Kong 40 (HSX) completed its rally yesterday by climbing from 21483 all the way up to 23259. The index retraced from its two month high as China mobile, the world’s largest mobile phone carrier, declined by 2%.
Commodities
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The WTI Crude Oil skyrocketed from 101.59 all the way up to 105.04 US dollars per barrel within few days and touched its 5 month high, on speculation that crude oil inventories shrank more than expected. The Crude Oil inventories will be revealed today at 14:30 GMT.
Mover & Shaker with FX Options
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The British pound declined by around 80 pips yesterday against the dollar, while it moved from 1.6816 down to 1.6735. More news are coming out today with the British unemployment rate expected to drop at 6.7%.
- Option traders may consider constructing a Long Straddle Spread Strategy on GBP/USD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle Strategy can be constructed by purchasing an at-the-money Call and Put.
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