Currencies

• The euro (EUR) has plummeted over the past few days against the dollar, touching 1.3525 from 1.3619 on Friday. The euro may be tested this morning as Spanish unemployment is released. Spain has the second highest unemployment in the Eurozone after Greece.

• The US dollar (USD) is moving ever higher against the Japanese yen (JPY) reaching 103.35. The yen continues to weaken as Japan has committed to its goals of continued monetary expansion until inflation reaches the 2% target.

Equities

• Having reached 1812 last week, the US 500 (SPI) has retraced to 1799. US equities will be tested in the following days following unemployment data releases tomorrow and on Friday.

Commodities

• WTI Crude (OIL) is moving higher to 94.10 up from 91.85 last week. American energy demand is picking up ahead of the winter session.

Mover & Shaker with FX Options

• Gold (XAU) has slid lower touching 1222 ahead of this week’s NFP release on Friday.

• Option traders may consider constructing Long Straddle Strategies on Gold to capitalise on higher volatility over the coming week.

• The Long Straddle is constructed by purchasing an at-the-money Call and an at-the-money Put option on the Gold, and may prove profitable if the price of gold moves higher or lower.