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Stocks Lower As Geopolitical Tensions Worsen

Published 08/18/2014, 05:16 AM
Updated 03/09/2019, 08:30 AM
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Currencies

  • The euro climbed against the dollar on Friday to 1.3400. The single currency rose but is still under pressure as the FOMC Meeting Minutes is coming ahead on Wednesday. Today the European Trade Balance will be announced and is expected to be at 14.9B.
  • The dollar fell against the Japanese yen at 102.35 on Friday as Ukraine reported convoy attack. The greenback is under pressure as the US inflation rate is coming ahead on Tuesday, while the FOMC Meeting Minutes in Jackson Holes is coming ahead on Wednesday.

Equities

  • European equities fell on Friday on speculation that tensions in Ukraine might worsen during the weekend. The DAX went to 9132, the EURO STOXX 50 (FSTX) to 3043 and the CAC 40 to 4191.

Commodities

  • WTI Crude Oil rose to 97.18 USD per barrel from 95.54 on Friday before the Crude Oil Inventories on Wednesday.

Mover & Shaker with forex options

  • Gold dropped against the USD dollar (USD) on Friday to 1292 before rebounding back to 1305 as US economy improvement looks more likely than the tensions in Ukraine, decreasing the demand for the safe haven.
  • Option traders may consider constructing a Straddle on the XAU/USD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
  • A Straddle can be constructed by buying an at the money Put and an at the money Call.

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.

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