Currencies- The euro consolidates between 1.3520 and 1.3557 against the US dollar. The single currency is under pressure lately and after Mario’s Draghi speech last week. The pair lost almost 150 pips this weekly session and may continue the downside in the short term.
The dollar touched its two week low at 101.85 against the yen, while is now trading around the level of 102.00. The yen continues to appreciate as the Bank of Japan (BoJ) may refrain from adding more stimulus measures in the meeting tomorrow.
The dollar touched its two week low at 101.85 against the yen, while is now trading around the level of 102.00. The yen continues to appreciate as the Bank of Japan (BoJ) may refrain from adding more stimulus measures in the meeting tomorrow.
Equities
Indices around the globe are declining as investors are shifting away from equities and are moving towards alternative investments.
Commodities
Natural Gas collapsed from its high at 4.738 all the way down to 4.499 US dollars per mmBTU within two days. Energy prices declined as the US Natural Gas Storage will be revealed at 14:30 GMT, as it is a significant news release for the energy.
Mover & Shaker with FX Options
Gold completed its rally and reached its two week high at 1265 US dollars an ounce, as investors are shifting away from equities and towards safe haven assets. On the calendar, the US Core Retail Sales are scheduled for 12:30 GMT with expectations at 0.4%.
- Option traders may consider constructing a Long Straddle Spread Strategy on XAU/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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