Currencies

• The euro (EUR) has picked up speed from 1.3710 late last week up to 1.3758 on opening against the dollar. Look ahead for manufacturing data comes out from key European countries this morning.

• The US dollar (USD) has dropped from 103.87 to 102.81 against the Japanese yen (JPY). The pair may be going over a correction from the four year high it has reached last week.

Equities

• US stocks continue their bearish trend with the US500 (SPI) touching 1760 before correcting slightly above 1766. Today’s manufacturing data releases in the US and Europe may help push equities higher.

Commodities

• WTI Crude (OIL) remains bearish, having found support twice around 96.20. Energy prices remain under pressure with dollar tapering on the horizon.

Mover & Shaker with FX Options

• Gold (XAU) has moved higher after finding support at 1221.00 dollars, The precious metal may be influenced by todays manufacturing data on both sides of the Atlantic as weaker data may push demand for safe haven assets.. Alternatively, the pair may retest its support over the short term.

• Options Traders expecting weaker gold demand may consider constructing Bear put spreads to capitalise on the move.

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