Currencies
- The euro (EUR) is range bound between 1.3485 and 1.3546 against the US dollar (USD). Mario Draghi, stated yesterday that European Central Bank (ECB) agreed for an easing bias that provides further rate reductions in order to prevent volatility in the market.
Gold (XAU) continues the downside touching at 1281 US dollars an ounce. The precious metal price dropped 30 US dollars within a day, on speculation that the US lawmakers may reach an agreement and avoid a possible default. The pair is now trading around 1290 and is moving towards lower lows.
Equities
- US stocks skyrocketed yesterday and rose the most since January. The US 500 (SPI) hit a monthly low at 1639 before retracing back to 1688, as the index is now trading around 1685.
Commodities
- Crude Oil (WTI) made a rally yesterday all the way up to 103.55, after touching its support at 101.15 US dollars per barrel. The energies came under a lot of pressure lately due to the US shutdown, but it looks that there is an optimism for a resolution on this matter.
Mover & Shaker with FX Options
- The US dollar (USD) continues the rally for a fourth day against the Japanese yen, touching at 98.55. The greenback rose as Barack Obama and US Republicans entered into discussions regarding the debt limit increase.
- Option traders may capitalise from the rally by purchasing at the money CALLs on USD/JPY. It looks that the US government shutdown will be resolved, resulting to see a strong dollar in the short term.
Disclosure: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose.