Currency Updates:
Currencies
- The euro (EUR) remains range bound as investors asses future movements. The single currency remains above 1.3681 against the greenback.
- The British pound (GBP) is rising steadily against the US dollar (USD). The cable looks at testing resistance at 1.6662 as the UK economy pivots to better performance and the Governor of the Bank of England has been proved true in tackling unemployment.
Equities
- European stocks continue to slide from the all-time highs at the beginning of the year. The GER 30 (DAX) has broken below support at 9388 in yesterday’s trading.
Commodities
- WTI Crude (OIL) reversed its higher highs for a correction at 95.20 in yesterday’s trading. Energy prices may be driven lower as supply considerations ease.
Mover & Shaker with forex options
- Gold (XAU) has found temporary support above 1251 as the dollar continues to weaken. This afternoon look ahead for US consumer data that may shake the pair.
- Options traders may consider constructing a Bull Call Spread on Gold if they expect gold to rise over the coming weeks.
- A Bull Call Spread can be constructed by purchasing an at-the-money Call and selling an out-of-the-money Call on gold.
