The euro (EUR) continues the bearish momentum and strives to remain above 1.2300 against the US dollar (USD). The ECB Press Conference will be held today at 13:30 GMT and if more stimulus measures will be signalled by Mario Draghi, then the single currency may pave the way towards lower lows.
The US dollar (USD) approaches the level of 120.00 against the Japanese yen (JPY). The greenback continues strengthening as there is a growth in the US economy while Japan remains in recession.
Equities
The US equities rallied yesterday as US economy is recovering and spurs economic growth. The US 500 (S&P) and the US 30 (DOW) reached their new record highs at 2075 and 17914 respectively.
Commodities
Natural Gas (NGS) continues the downside for another consecutive day, while it reached its 6-week low at 3.751 US dollars per mmBTU. The Natural Gas storage will be revealed today at 15:30 GMT and expectations show that the number of cubic feet held in the underground storage changed by -51 Billion.
Mover And Shaker With Forex Options
The British Pound (GBP) rose from 1.5618 all the way up to 1.5718 against the US dollar (USD), before the retracement back to 1.5680. The cable climbed after better than expected Services PMI came out. The minimum bid rate is on the calendar, with expectations that will remain unchanged at 0.5%.The Monetary Policy Committee (MPC) remains devoted regarding a possible increase of the key interest rate.
Option traders may consider buying a Long Straddle on the GBP/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 purchasing an at-the money Call and Put.
