Currencies
- The euro climbed up to 1.3429 against the dollar as the US Non-Farm Payrolls (NFP) came out 209K number of employed people, while the expectation was at 231K. However, the single currency is still under pressure as European Central Bank’s (ECB) Conference will take place on Thursday. The president of the ECB, Mario Draghi, is expected to be dovish as the European’s inflation rate was lower than previous month.
- The dollar dropped against the Japanese yen at 102.35 after worse than expected US NFP data and increase of the unemployment rate. The greenback was weaker on Friday cooling down the rally that dollar had last week.
Equities
- The European indices fell on Friday. The DAX went to 9151, the France 40 (CAC 40) to 4180 and the EURO STOXX 50 (FSTX) down to 6054.
Commodities
- US Wheat climbed to two week high at 545.17 bushels per USD cents as rain last month concerned to hurt the crop quality in Europe.
Mover & Shaker with forex options
- The pound continues its bearish trend against US dollar (USD) and trades around 1.6820 as the UK Manufacturing PMI data were worse than expected at 55.4 while the expected data were at 57.2. The cable is under pressure as the UK Construction PMI will be announced today and is expected to be at 62.1.
- Option traders may consider constructing a Back Spread Strategy with Puts on the GBP/USD and gain if the pair moves lower, while the risk is limited to the premium paid.
- A Back Spread Strategy with Puts can be constructed by selling an at the money Puts while buying an out of the money Puts at double amount.
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