Currencies
- The euro (EUR/USD) completes its weekly rally by gaining more than 220 pips against the US dollar (USD) and climbed up to 1.3898. The pair advanced as there is speculation that the US interest rates will rise in the next few months.
The Australian dollar (AUD/USD) retraced back to 0.9362 from its five month high at 0.9460 against the US dollar (USD). The aussie completed the best rally since August 2012 and signals that the currency is overbought.
Equities
The Australia (ASX) index declined from its high at 5520 down to 5411 yesterday. The Australian index fell as technology shares reduced demand for riskier assets.
Commodities
Natural Gas (Natural Gas Services Group Inc (NGS)) skyrocketed from 4.524 all the way up to 4.704 US dollars per mmBTU. The Energy Information Administration announced yesterday the natural gas storage and only 4 billion cubic feet held in the underground storage during the last week.
Mover & Shaker with FX Options
Gold (Philadelphia Gold/Silver) remains bullish and reached its three week high at 1324 US dollars an ounce. The precious metal continues to rise as there is an increasing demand for haven assets.
- In the short term, gold may continue its bullish momentum and options traders may consider constructing a Bull Call Spread on XAU/USD.
- A bull call spread can be constructed by purchasing an at-the-money Call and selling an out-of-the-money Call.
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