Currencies
- The euro continues its bearish trend against the dollar, reaching a new 9-month low at 1.3302. The single currency continues to be under pressure as the European PMI will be announced tomorrow and FOMC meeting minutes are released this evening.
- The dollar rose against the yen to 103.16. The greenback climbed to a 4-month high as the US Building Permits and Housing Starts were better than expected at 1.05M and 1.09M, while the expected Building Permits and Housing Starts were at 1.00M and 0.97M. The US economy shows signs of recovery, while later investors look ahead to FOMC Meeting Minutes about the projections of the US economy, with speculations of raising the interest rates increasing.
Equities
- The US equities rose yesterday as the US economy recovers faster. The S&P 500 advanced to 1975, the Dow 30 climbed to 16873 and the Novadaq Technologies Inc. (TO:NDQ) went to 4032.
Commodities
- WTI Crude Oil fell to an 8-month low at 92.83 USD per barrel ahead of the Crude Oil Inventories later today. The inventories are expected to shrink by 1.3M barrels.
Mover & Shaker with forex options
- The British pound dropped to a 4-month low against the USD dollar (USD) at 1.6605 as the yearly UK CPI came out to be worse than expected at 1.6%, while the expected inflation data were at 1.8%. Today the Monetary Policy Committee of Bank of England’s will vote for the Interest Rate and for the Asset Purchase Facility, with possibilities of increasing interest rates lower.
- 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 Put while buying an out of the money Put at double amount.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Disclaimer: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full risk disclaimer.