Currencies
- The euro dropped yesterday to 1.2916 against the dollar. The euro is under pressure as today the president of European Central Bank (ECB) will speak at the Eurofi Financial Forum in Milan about the European economy and may reveal some hints about any new stimulus measures he may add.
- The dollar went to 107.00 for first time since September 2008 earlier today against the Japanese yen. The greenback continued its bullish trend despite the better than expected Japanese BSI Manufacturing index which came out to be at 12.7, with expectations lying at -10.3. Today the US Unemployment Claims will be announced and are expected to be at 306K claims.
Equities
- European equities gained as investors seek for riskier assets. The Germany 30 (DAX) remained range bound at 9730, the France 40 (CAC) went to 4471 and the EU Stoxx 50 to 3258.
Commodities
- Gold fell to a new three-month low yesterday at 1240, before Obama’s speech about ISIS.
Mover & Shaker with forex options
- The New Zealand dollar fell to a 7-month low at 0.8186 against the US dollar, as the Reserve Bank of New Zealand (RBNZ) said that will keep the interest rates longer as it lowered inflation predictions and the currency continued to be weaker.
- Option traders may consider constructing a Back Spread Strategy with Puts on the AUD/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 Puts while buying an out of the money Puts at double amount.
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