Currencies
- The euro dropped yesterday against the dollar from 1.3679 by 0.2% and is currently trading around 1.3650. The pair crashed yesterday after the US ADP Non-Farm employment change announcement, as the data was better than expected. The single currency is under pressure today as European Central Bank press conference and US Non-Farm Payrolls are taking place this afternoon at the same time.
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The dollar is edging higher against the yen at 101.873. The dollar rose from almost an eight-week low against the yen as a better than expected private jobs report boosted confidence that nonfarm payroll data tomorrow may show the US economy is having a stronger recovery.
Equities
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US equities remain range bound, after reaching all-time highs on Tuesday. The S&P 500 went to 1966, the (Dow 30), towards 16888 and the Novadaq Technologies Inc to 3889.
Commodities
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Platinum fell from its highest in 10 months and is currently trading at 1496, after good US employment data may show further improvement in the US economy.
Mover & Shaker with FX Options
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Gold was range bound around 1325 yesterday, with resistance around 1333 and support below 1321. Gold fell this morning as investors looking for riskier assets, while the ECB and NFB come ahead later today.
- Option traders may consider constructing a Long Straddle Strategy on the 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 buying an at the money a Call and a at the money Put.
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