Currencies
- The euro (EUR) crashed from 1.3528 all the way down to 1.3294 against the US dollar (USD). The single currency fall unexpectedly after the European Central Bank (ECB) cut its main refinancing rate to a record low at 0.25%, with the aim to boost the European economy.
The US dollar (USD) rose from 98.64 up to 99.40 before reversing back to 97.60 against the Japanese yen (JPY). The pair is now trading around 98.10 ahead of the major release of the month, US Non-Farm Payrolls due at 13:30GMT. Forecasts show that only 121K jobs added last month, anything worse than expectations may pave the way towards lower lows for the pair.
- The US 500 (SPI) recorded a new high at 1774 before dropping down to 1742 yesterday. The index is now trading around 1747 awaiting for the US data this afternoon.
- WTI crude (OIL) swings between gains and losses, while dropped from 95.30 down to 93.79 US dollars yesterday.
- Gold (XAU) collapsed yesterday, falling below 1300 US dollars an ounce. The precious metal recorded a monthly low at 1297, after falling below its support at 1314.
- Expecting high volatility today due the Non-Farm Payrolls release, option traders may consider contracting short dated Straddles on gold. Straddles may appreciate if the market swings in any direction and traders may protect their positions from unexpected results.
The Straddle strategy involves buying at the money Put and at the money Call option. While keeping costs fixed, the straddle may appreciate both when the market moves higher or lower.
Risk Warning : 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.
Please refer to our full risk disclaimer.