Currencies
- The euro crashed yesterday to the lowest point in the last eight months at 1.3366 as the US GDP data came out better than expected at 4.0%, despite the bad US ADP Non-Farm Employment change. The single currency rebound towards 1.3395 after dovish Fed. Today the yearly European CPI Flash Estimate will be announced where it expected to be at 0.5%.
- The dollar skyrocketed yesterday against the yen while reaching a 3-month high at 103.08 after better US GDP. The greenback rose versus all 15 major currencies, consumer confidence improved and durable goods increased.
Equities
- Asian equities gained yesterday. The Nikkei 225 advanced to 15762, the FTSE Hong Kong went to 24639, the HS CHINA 50 to 7259 and the FTSE RAFI India 50 to 7800.
Commodities
- WTI Crude Oil crashed yesterday towards 99.53 USD per barrel as gasoline stockpile rose and demand declined in the US.
Mover & Shaker with forex options
- The British pound fell yesterday against the US dollar (USD) as the US economy recovered faster than expected, speculating it will increase interest rates for first time since 2008.
- 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 Calls while buying an out of the money Calls at double amount.
Disclaimer: 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.