Dollar Weakens Before Yellen Speaks
Easy Forex | Jul 14, 2014 04:30AM ET
Currencies
- The euro remains range bound against the US dollar at 1.3603. ECB president Mario Draghi is expected to testify today in Strasbourg on monetary policy, after the introduction of the ECB’s newest stimulus tool that will hand to banks more than 950 billion USD to raise the inflation rate.
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The dollar dropped towards 101.23 yesterday night against the yen before rebounding back to 101.40. The pair is still trading near its lowest in the last seven weeks before Fed’s Janet Yellen testifies to US lawmakers tomorrow.
Equities
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Asian equities edging higher. The Nikkei 225 advanced to 15317, the Hong Kong went to 23204, the China A50 to 6644, while India 50 dropped to 7485.
Commodities
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Sugar (SGR) dropped towards 17 USD cents per pound as excess supply seems to be overrunning demand.
Mover & Shaker with FX Options
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Gold dropped towards its support at 1332, as investors considered signs that the rally of gold might be excessive as investors shun safe haven assets.
- Option traders may consider constructing a Back Spread Strategy with Puts on the XAU/USD and gain if the pair moves lower, while the risk is limited to the premium paid.
- A Back Spread Strategy with Puts can be constructed by selling an at the money Put while buying an out of the money Put at double amount.
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