Gold Remains Under Pressure; Euro Rebounds From 3-Month Low

Published 05/27/2014, 03:50 AM

Currencies

  • The euro rebounded from its three month low at 1.3614 all the way up to 1.3667 against the US dollar. The single currency advanced despite the fact that Mario Draghi on his speech signalled a possible action in June.
  • Gold remains fragile and below the psychological level of 1300 US dollars an ounce. The precious metal is now trading around the level of 1290, as the election of the Ukraine president may ease the tensions with Russia.

Equities

  • Germany 30 DAX skyrocketed and reached its record high at 9898, after the European Parliament elections held on the Weekend.

Commodities

  • Corn dropped down to its two month low at 470.35, on speculation that the US farmers increased planting due to the warm weather.

Mover & Shaker with FX Options

  • The British pound rose another 30 pips and erased part of previous week’s losses against the US dollar. US data are about to revealed today after 12:30 GMT, with the US monthly Durable Goods Orders forecasted at 0.2% and the US consumer Confidence at 83.2.

  • Option traders may consider constructing a Bull Call Spread strategy on GBPUSD and gain if the pair moves higher with the risk limited to the premium paid.
  • A Bull Call Spread can be constructed by purchasing an at-the-money Call and selling an out-of-the-money Call.

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