Gold Skyrockets To A 2-Month High

Currencies

• The euro continues its bearish trend against the dollar. The pair climbed by 0.7% from 1.3521 to 1.36245 this week, which is the biggest weekly gain in the last two months. Investors are looking ahead at Eurozone current account data coming out this afternoon.

• The dollar dropped against the yen to 101.81 from 101.95 yesterday. The greenback is under pressure after the Fed’s statement on Wednesday, while today the governor of Bank of Japan Kuroda will speak as the Japanese economy is halfway towards its inflation target.

Equities

• Asian equities fell from a six-year high as materials and technology companies edged lower. The Nikkei 225 moved to 15374, the CSI RAFI Hong Kong 50 (HSX) to 16820, the HS CHINA 50 to 6679, while the FTSE RAFI India 50 traded above 7554.

Commodities

• Natural Gas fell yesterday towards 4.58 dollars per mmBTU as Natural Gas Storage came out slightly higher than expected.

Mover & Shaker with FX Options

• Gold skyrocketed to a two-month high, as the Fed said it will keep interest rates near zero for a considerable time, while the violence in Iraq and the tension in Ukraine boosted demand for the precious metal.

• Option traders may consider constructing an Iron Butterfly Strategy on the XAU/USD and gain if the pair remains within a range, while the risk is limited to the premium paid.
• An Iron Butterfly Strategy can be constructed by buying an out the money Put and an out of the money Call, while selling an at the money Put and an at the money Call.

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