USD Trading Outlook (17-01-2014)
Currencies
- The euro (EUR) remained range bound in yesterday’s trading session against the dollar. Support lied at 1.3582 while the pair could not move above 1.3647. Today’s US data releases may help the pair pick up on volatility.
-
The US dollar (USD) has found strong support at 104.20 against the Japanese yen (JPY) after falling from yesterday’s weekly highs. The dollar has proven resilient against downward pressure in the past few months. Building Permits and Consumer sentiment may fuel the pair’s movement over the afternoon.
Equities
-
US stocks opened lower with the US 500 (SPI) currently at 1837.76 after disappointing results from major constituents. Wall Street will keep an eye on today’s consumer confidence for future direction.
Commodities
-
Brent crude oil (BRT) fell to 105.45 where it found strong support in yesterday’s trading. Energy prices have been under pressure as supply considerations are eased.
Mover & Shaker with FX Options
-
Gold (XAU) has had a vibrant week rising to 1255.30 before falling to 1234.05 dollars per ounce. However gold investors were in no short supply to buy at the cheap and managed to bring up the price to 1243.60. As volatility picks up, investors are looking at safe guarding their capital.
- Options traders may consider constructing a Long Straddle on Gold if they expect volatility to pick up in either direction in the next few weeks.
- A Gold Straddle can be constructed by purchasing an at-the-money Put and an at-the-money Call on gold.
