The euro crashed yesterday while it reached its 8-month low against the dollar at 1.3458. The single currency dropped after the yearly US CPI announcement which was near the target inflation that Fed set. This means that Fed might increase interest rates earlier than expected. The dollar climbed towards 101.59 against the yen. The monthly US CPI and the US Existing Home Sales were near expectations, as US might be the first country raising interest rates. Equities US equities gained yesterday. The S&P 500 (SPI) advanced to 1980, the Dow 30 went to 17067 and the Novadaq Technologies Inc. (TO:NDQ) to 3958. Commodities WTI Crude Oil fell yesterday to 101.80 USD per barrel after industry report showed gasoline supplies expanded in the US. Today the Crude Oil Inventories will be announced with expectations at -2.1M barrels held in inventory. Mover & Shaker with FX Options Gold remains range bound and is now trading near 1306 US dollars an ounce. Gold skyrocketed after the yearly US CPI from 1301 all the way up to 1315 before retracing back where is now trading. Option traders may consider constructing a Long Straddle on the XAU/USD and gain if the pair moves in either direction, while the risk is limited to the premium paid. A Long Straddle can be constructed by buying an at the money Put and an at the money Call.

Source