Currencies
- The euro (EUR) collapsed around 200 pips yesterday and trades near its 2-year low at 1.2368 against the US dollar (USD). The single currency declines as greenback appreciates across the board ahead of the ADP Non-Farm Payrolls, as expectations are at 223K.
- The US dollar (USD) reached up to a new 7-year high at 119.43 against the Japanese yen (JPY), as the Fed signals confidence in the US economy and there is a speculation to increase interest rates in the short term.
Equities
- The Japan 225 (Nikkei) hits new record highs at 17897, as the depreciation of the yen increased demand for exporters.
Commodities
- WTI Crude (OIL) failed to break above 69.55 and retraced back to 67.22 US dollars per barrel, where it trades now. The decline of the oil prices helps the global economies for their recovery and spurs demand. The crude oil inventories are on the calendar with expectations at 1.1 Million barrels.
Mover And Shaker With Forex Options
- The Australian dollar (AUD) slid from 0.8542 all the way down to 0.8387 against the US dollar (USD) and reached its 4-year low. The aussie dropped significantly as the Australian economy slowed down for a second consecutive quarter and we may see lower interest rates.
- Option traders may consider buying a Put on the AUD/USD and gain if the pair continues the downside, while the risk is limited to the premium paid.
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