Currencies
- The euro dropped yesterday down to 1.3512 against the dollar. The single currency has formed its resistance at 1.3545 and support at 1.3500 while edging lower.
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The dollar rose from 101.19 towards 101.50 against the yen. The monthly US CPI and the US Existing Home Sales are coming ahead with expectations of at 0.2% and 4.98M respectively.
Equities
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Asian equities advanced earlier today as investors believe that the tensions in Ukraine won’t hurt the global economic growth. The FTSE Hong Kong recorded 7 months high at 23608, the Nikkei 225 went up to 15407, HS CHINA 50 to 6790 and FTSE RAFI India 50 towards 7743.
Commodities
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US Corn is currently trading near its four year low at 363 USD cents per bushel as the supply increases due to favourable weather in the US.
Mover & Shaker with FX Options
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Gold remains volatile and is now trading near 1307 US dollars an ounce, as investors are weighting the tensions in Gaza and Ukraine against the strong US dollar.
- 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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