Currencies
- The euro (EUR) remains under pressure early in the day falling against the US dollar (USD) (EUR/USD). The single currency has dropped to 1.3860 from 1.3889 on yesterday’s early trading. Today’s EU unemployment data release may test the pair..
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The US dollar (USD) remains bullish against the Japanese yen (JPY) (USD/JPY). The greenback advanced from 102.04 to 102.39 as investors are eager for the release of US Non-Farm payrolls (NFP) this afternoon. Better than expected US data may push the dollar to higher highs.
Equities
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US stocks remains range bound with the S&P 500 trading above 1883.56 and the Dow 30, measuring the performance of 30 blue chip companies is trading just below 16557.3.
Commodities
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US Cocoa, the main ingredient in chocolate, prices are flattening out after a steady rise from 2,000 to 3,000 dollars per metric tonne. The commodity has since slid to 2916.
Mover & Shaker with FX Options
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Gold continues to slide throughout the week as the precious metal comes under pressure from a stronger US dollar (USD). The pair may see volatility pick up sharply during today’s NFP data release at 12:30 GMT.
- Higher volatility maybe capitalised using options. A Long Straddle strategy gains if the pair moves above or below certain strike prices.
A Long Straddle can be constructed by purchasing an at-the-money Call and an at-the-money Put.
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