Currencies
- The euro continues its bullish trend over the last two weeks against the dollar and is currently trading at 1.3684. The single currency rose yesterday after bad data came out on US Pending Home Sales.
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The dollar remains range bound around 101.41 against yen. Despite the bad US home sales figures, the pair remained in range bound as Japanese stocks rose.
Equities
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The Nikkei 225 rose towards 15347 as Japanese companies lift investment plans, as Bank of Japan’s “tankan” survey showed, even as economy growth is slow.
Commodities
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Soybeans continues its bearish trend reaching a 5-month low at 1327.25 USD cents per bushel, as extremely low stocks and high prices have driven US farmers to increase soy crops, pushing the market into further lows.
Mover & Shaker with FX Options
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Gold skyrocketed to 1332 dollars per ounce, rising by 1.3%. Gold traded near the highest level since March after assets in the SPDR Gold Trust (ARCA:GLD) increased and investors considered the outlook for growth and interest rates in the U.S. before manufacturing data.
- Option traders may consider constructing a Long Straddle Strategy on the XAU/USD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
- A Long Straddle Strategy can be constructed by buying an at the money Call and an at of the money Put.
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