Currencies
- The euro dropped down to 1.3408 against dollar. The euro remains under pressure as the European Central Bank (ECB) meets this week while the president of the ECB, Mario Draghi, might loosen monetary policies even further.
- The dollar erased part of its loses and moved up to 102.72 before falling down to 102.40 against the yen. The greenback continues the downside after reaching its 3-months high at 103.08 last week. Today the US ISM Non-Manufacturing PMI will be announced at 14:00 GMT with expectations lying at 56.6.
Equities
- The Asian indices fell earlier today as China’s services industry reached their record low. The Nikkei 225 went to 15342, the HS CHINA 50 to 7387, the Hang Seng to 24380 and the FTSE RAFI India 50 down to 7690.
Commodities
- Soybeans declined down to 1053 US dollars reaching its four year low, on speculation the weather forecast in the US will ease the dry weather and increase supply.
Mover & Shaker with forex options
- Gold fell yesterday from 1297 down to 1286 US dollars an ounce. There is a decrease in demand for gold as Portugal’s bailout reduced concerns and the tensions in Gaza have been eased.
- 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 Puts while buying an out of the money Puts at double amount.
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