Currencies
- The euro fell yesterday against the US dollar EUR/USD to 1.3575 before rebounding back to 1.3609. The euro rebounded after Bullard looked dovish in an interview, leaving the sense that the market is appreciated more than the reality.
The US dollar continues its decline for a third consecutive day and dropped down to its monthly low at 101.30 against the Japanese yen USD/JPY. The dollar extended its decline as the US Treasury yields fell more than expected.
Equities
Most of the European equities fell yesterday with the UK100 (FTSE) moved down to 6652, the France40 (CAC) fell at 4406, DAX went to 9755, the Swiss20 to 8512 and the DJ Euro Stoxx 50 declined down to 3206.
Commodities
WTI Crude (Oil) and Brent Oil (Brent) fell as the crisis has so far spared oil output from OPEC’s second largest producer. Crude is currently trading at 105.62 and Brent at 113.01.
Mover & Shaker with FX Options
British Pound (GBP) appreciated and climbed up to 1.7050 approaching its 5-year high against the US dollar (USD). The pound is edging higher, as Bank of England’s new measures over the housing market would not ruin the economy.
- Option traders may consider constructing a Back Spread Strategy with Calls on the GBP/USD and gain if the pair moves higher, while the risk is limited to the premium paid.
- A Back Spread Strategy with Calls can be constructed by selling an at the money Call, while buying an out of the money Call at double amount.
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