Currencies
- The euro (EUR) is edging lower against the US dollar (USD) and is currently trading at 1.3669.The pair fell yesterday despite the better EU Unemployment Rate. Euro is under pressure as tomorrow the US Non-Farm Payroll and the European Central Bank Press Conference will take place the same time, while huge volatility is expected in the market.
The US dollar (USD) rose against Japanese yen (JPY). The yen weakened from an almost six-week high versus the dollar as Chinese data look confident for economic growth and fuelled demand for riskier assets. The pair is currently trading at 101.59.
Equities
European equities rose yesterday with the Germany 30 (DAX) advanced to 9915, France 40 (CAC) went to 4457, Swiss 20 (SMI) to 8614 and EU Stocks 50 (ESX) towards 3253.
Commodities
WTI Crude (Oil) traded near the lowest price in two weeks at 105.42 before the Crude Oil inventories announcement today that may signal a change in oil demand in the US.
Mover & Shaker with FX Options
The British Pound (GBP) climbed to a six-year high against the US dollar (USD) yesterday, after better than expected UK manufacturing data boosted the expectations that Bank of England will be the first Bank to raise the interest rates. The pair is currently trading at 1.7145.
- 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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