Currencies
- The euro rebounded from its four month low at 1.3585 up to 1.3625 against the US Dollar, before the retracement back to 1.3604 where is trading now. The single currency erased part of its losses, after the quarterly US GDP came out less than expected.
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The US dollar declined from the level of 1.0871 down to 1.0824 against the CAD and reached its monthly low. The loonie appreciated as the monthly Canadian GDP will be revealed at 12:30 GMT with expectations at 0.1%. Anything higher may pave the way towards new lows.
Equities
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The US equities climbed up to new highs, with the S&P 500 recording its all-time high at 1917 and the US Tech (NASDAQ) reached its three month high at 3736.
Commodities
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WTI Crude Oil (Oil) rebounded from its low at 102.60 all the way up to 103.90 US dollars per barrel, despite the fact that the US crude oil inventories are expanded more than expected.
Mover & Shaker with FX Options
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Gold (XAU) continued the downside reaching the level of 1251 US dollars an ounce. Investors are shifting away from metals and towards riskier assets, as the US economy shows signs of improvement.
- Option traders may consider constructing a Bear Put Spread strategy on XAU/USD and gain if the pair continues the downside while the risk is limited to the premium paid.
A Bear Put Spread can be constructed by purchasing an at-the-money Put and selling an out-of-the-money Put.
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