Currencies
- The euro (EUR) is trading above 1.3625 as the US shutdown has pushed the dollar lower. The Non-Farm Payroll data announcement today has been cancelled as a result of the shutdown of US agencies. A release will be rescheduled in the near future with no more information available.
- The US dollar (USD) weakened against the Japanese yen (JPY) further, touching 97.10. The dollar may look at further downside should the Bank of Japan prove less Dovish than expected.
Equities
- The US 500 (SPI) is on a bearish trajectory since mid-September when fears of the Government shutdown were imminent. The index touched 1663 before correcting to 1667 on yesterday’s trading.
Commodities
- Crude Oil (WTI) is range bound after finding support at 102.86 dollars per barrel. Energy prices have had a negative shock from the ongoing US shutdown.
Mover & Shaker with FX Options
- Gold (XAU is looking at further upside following the fourth day of the US shutdown. The precious metal is looking at testing resistance above 1320.
- Options traders are looking to capitalise from the pair’s move by buying CALL options on the XAU/USD.
- Cost conscious investors are selling CALL options on the metal slightly out of the money to recover some of the premium while still capitalising from an upside move.
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