Currencies
- The euro (EUR) dropped down to 1.2439 against the US dollar (USD) and reached its two year low. The US outlook look much stronger rather than the European one. The ECB meets this Thursday and a dovish tone by Mario Draghi may push the pair even lower.
- The US dollar (USD) opened higher this weekly session and reached its 7-year high at 112.99 against the Japanese yen (JPY). The Bank of Japan (BoJ) unexpectedly increased its stimulus measures on Friday morning and weakened the local currency by more than 360 pips.
Equities
- The US indices headed for higher highs and break previous resistance levels. The US 500 (S&P 500) rallied from Thursday’s low at 1958 all the way up to 2016 and the US Tech (NASDAQ) rose from 4042 up to 4163.
Commodities
- Agricultural commodities such as (Corn) and (Wheat) declined as the favourable weather in US may boost harvest and increase global supply. The Corn (CRN) reached at 367.64 and Wheat (WHT) dropped down to 522.65 US dollars per Bushel.
Mover And Shaker With Forex Options
- Gold (XAU) crashed from 1202 all the way down to 1161 US dollars an ounce and reached its lowest level since July 2010. The demand for precious metal diminishes as the Federal Reserve ended its QE program and investors are shifting towards riskier assets.
- Option traders may consider buying a Put on XAU/USD and gain if the pair continues the downside, while the risk is limited to the premium paid.
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