Currencies
- The euro rose to 1.3432 before falling down to 1.3399 against the US dollar. The single currency is under pressure as the European Central Bank (ECB) kept its benchmark interest rate at 0.15%. The president of ECB said that they will keep interest rates low until inflation picks up. He also said that the sanctions between Europe and Russia have a bigger impact on Eurozone than other parts of world.
- The US dollar climbed to 102.21 against the Japanese yen earlier today. The yen fell as concerns about tensions between Ukraine and Russia eased. The yearly Japanese PPI will be announced today, expected to be at around 4.4%.
Equities
- The US equities gained as geopolitical tensions eased, while investors are looking for riskier assets. The S&P 500 advanced to 1927, the Dow went to 16509 and the Novadaq Technologies Inc. (TO:NDQ) to 3883.
Commodities
- Wheat fell to 543.38 USD cents per bushel, while investors speculate on a rise in price as concerns that Black-Sea supply will be disrupted.
Mover & Shaker with forex options
- Gold fell to 1305 USD per troy ounces on opening earlier today as the investors weighed geopolitical tensions.
- Option traders may consider constructing a Back Spread Strategy with Puts on the XAU/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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