Currencies
- The euro touched its support at 1.3600 against the US dollar, as the ECB conference starts at 12:30 GMT and volatility picks up. Market participants are anticipating an aggressive easing policy by the European Central Bank (ECB) and the minimum bid rate is expected to drop down to 0.1%.
Gold range bound between 1240 and 1250 US dollars an ounce. The precious metal moved higher after worse than expected figure revealed for the US ADP Non-Farm payroll and before the retracement back to1241. The pair is now trading around 1243 waiting for more news to come out.
Equities
The European indices fluctuate as investors are waiting for the ECB meeting today and further news affecting the Eurozone. The Germany 30 trades around 9930, the FTSE RAFI UK 100 dropped down to 6800 and DJ Euro Stoxx 50 is now near the level of 3240.
Commodities
Natural Gas climbed from 4.570 all the way up to 4.673 US dollars per mmBTU. The energy recorded its monthly high as the Natural Gas Storage is due at 14:30 GMT and is considered a mover for the energy.
Mover & Shaker with FX Options
The pound rebounded around 70 pips against the dollar. The cable advanced after the US filled only 179K new jobs. The British official bank rate is expected to come out at 11:00 GMT, as the expectations leave the rate at 0.5% and the pair is now trading around the level of 1.6742.
- Option traders may consider constructing a Long Straddle strategy on the GBP/USD and gain if the pair moves significantly in either direction, while the risk is limited to the premium paid.
- A Long Straddle can be constructed by purchasing an at-the-money Call and Put.
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