Currencies
- The euro (EUR) moved higher after yesterday’s mostly muted FOMC statement. It has subsequently continued to decline ahead of today’s German and French manufacturing PMI. The single currency is currently moving just below 1.3664.
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The US dollar (USD) gained ground against the Japanese yen (JPY) moving above 101.65 after yesterday’s FOMC statement. The dollar may come under scrutiny this afternoon as US home sales and unemployment data are released.
Equities
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Investors continue their keen interest in US equities even as they slide lower. The US 500 (SPI) moved to 1887, the US30 (DOW) to 16536 while the US Tech index (NDQ) is at 3640 points.
Commodities
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Natural gas (NGS) has come under pressure moving lower from 4.56 dollars per mmBTU. This afternoon’s release of natural gas Inventories may reveal more supply restrictions than predicted.
Mover & Shaker with FX Options
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Gold (XAU) remained range-bound between 1285 and 1296 dollars per ounce over the short term. Over the medium term, it seems that the metal is waiting for a breakout, however this may depend more on a fundamental rather than technical change in the market.
- Option traders may consider constructing a Straddle Spread strategy on gold and gain if the pair moves sharply higher or lower with limited risk to the premium paid.
The US dollar (USD) gained ground against the Japanese yen (JPY) moving above 101.65 after yesterday’s FOMC statement. The dollar may come under scrutiny this afternoon as US home sales and unemployment data are released.
Investors continue their keen interest in US equities even as they slide lower. The US 500 (SPI) moved to 1887, the US30 (DOW) to 16536 while the US Tech index (NDQ) is at 3640 points.
Natural gas (NGS) has come under pressure moving lower from 4.56 dollars per mmBTU. This afternoon’s release of natural gas Inventories may reveal more supply restrictions than predicted.
Gold (XAU) remained range-bound between 1285 and 1296 dollars per ounce over the short term. Over the medium term, it seems that the metal is waiting for a breakout, however this may depend more on a fundamental rather than technical change in the market.
A Straddle can be constructed by purchasing an at-the-money Call and an at-the-money Put.
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