Currencies
- The euro (EUR) continued its bullish momentum by gaining ground against the US dollar (USD) and climbed up to 1.3870. The single currency remains strong as the European countries are towards recovery, with Greece returning back to bond markets by issuing five-year notes via banks.
The British Pound (GBP) gained another 100 pips against the US dollar (USD) and rose up to 1.6819 yesterday. The cable advanced ahead of the UK Bank Rate, due at 8:00GMT, with expectations to leave the rate at 0.5%.
Equities
The US stocks climbed yesterday with the US 30 (DOW) rose from 16175 up to 16380 and the US 500 (SPI) advanced from 1830 up to 1867.
Commodities
WTI Crude (OIL) recorded a new monthly high at 103.75 US dollars per barrel. The crude oil made a rally this week by rising almost 4 US dollars as there is an increasing demand for oil.
Mover & Shaker with FX Options
Gold (XAU) retraced from 1313 down to 1300 yesterday before rebounding up to 1317 US dollars an ounce. The FOMC meeting minutes were dovish while there is no certainty at when interest rates might start rising.
- 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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