Currencies

• The euro (EUR) dropped from its six week high at 1.3810 down to 1.3737 against the US dollar (USD). The single currency lost its bullish momentum and now consolidates below its new resistance at 1.3758.

• The US dollar (USD) skyrocketed to its highest level since October 2008 at 103.91 against the Japanese yen (JPY). The yen suffered its biggest losses before Federal Reserve (Fed) and Bank of Japan (BoJ) meet next week to set policy.

Equities

• The US stocks dropped even lower on speculation that the Fed may trim its asset purchases next week. The US 500 (SPI) hit its monthly low at 1771 and may fall even lower ahead of the FOMC meeting next week.

Commodities

• WTI Crude (OIL) consolidates around the level of 97.50 US dollars per barrel. The crude oil may be seen lower during the following days on speculation that the Fed may slow the economic stimulus next week.

Mover & Shaker with FX Options

• The Australian dollar (AUD) slashed down to 0.8912, reaching its four month low against the US dollar (USD).  The aussie lost more than 250 pips this week as the Australian unemployment rises and US economy shows signs of recovery.

• The pair may continue the downside for another day and break below its support at 0.8900. Thus, option traders may consider constructing a Bear put Spread.

• The Bear put Spread can be constructed by purchasing an in-the-money Put while selling out an out-of-the-money Put on AUDUSD.