Currencies
- The euro (EUR) edging lower against the US dollar (USD) and is currently trading at 1.3543. The pair is under pressure as Federal Open Market Committee (FMOC) statements on Wednesday might come in contrast with European Central Bank’s and cause further divergence in monetary policy. Today European’s Core Consumer Product Index (CPI) will be announced.
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The US dollar (USD) dropped against the Japanese yen (JPY) yesterday from 102.08 to 101.77. The dollar dipped over the yen as the Tokyo equities getting weaker. Today the Industrial Production m/m might shake the pair, as FOMC approaches on Wednesday.
Equities
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Most of Asian indices dropped as Iraq threatens for civil war. Japan 225 (NKI) fell at 14939, Hong Kong 40 (HSX) at 23240, India 50 (IND) at 7544 and China 50 (CNX) rose at 6894.
Commodities
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WTI Crude (Oil) continues climbing at 107.44, near its 9-month high as Iraq conflicts will disrupt supply.
Mover & Shaker with FX Options
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Gold (XAU) keeps rising over the last week and is currently trading 1282, as investors are shifting towards safe haven assets after Iraq threatens to erupt into outright civil war on Thursday.
- Option traders may consider constructing a Back Spread Strategy on XAU/USD and gain if the pair moves higher, while the risk is limited to the premium paid.
- A Back Spread Strategy can be constructed by selling a Call at the money, while buying two calls in the money.
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