Currencies
- The euro declined down to 1.2815 against the US dollar (USD) while its resistance lies at 1.2870. Mario Draghi stated yesterday that the ECB will control closely the balance sheet in order to prevent deflation. The European Flash Services PMI are due at 08:00 GMT and expectations are at 53.2.
- The US dollar (USD) climbed up to 38.8350 against the Russian Rouble (RUB). The rouble fell to record low as the Oil prices are falling and on prospects that Fed may raise interest rates in the near term. The two events have a direct impact on the currency.
Equities
- The UK 100 (FTSE) dropped down to its monthly low at 6731, as Tesco reported 250 Million Pounds overstated profits in its first half reports.
Commodities
- Soybeans (LONDON:SOYB) tumbled down to its 4-year low at 930 US dollars per bushel, as investors are sceptical due to low demand from China.
Mover And Shaker With Forex Options
- Gold (XAU) rebounded from its 8-month low at 1208 up to 1220 US dollar an ounce. The precious metal is fragile as investors are weighting the recovering of the global economy and the demand for the safety haven.
- The metal remains bearish, thus Option traders may consider buying a PUT on XAU/USD and gain if the pair continues its momentum, while the risk is limited to the premium paid.
Disclaimer: 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.