Currencies

• The euro (EUR) lost more than 90 pips yesterday and fell down to its monthly low at 1.3660 against the US dollar (USD). The pair was consolidating around 1.3740 before better than expected US new home sales came out and drove the pair lower.

• The US dollar (USD) rallied from its low at 102.00 all the way up to 102.60 against the Japanese yen (JPY). Yen lost all its previous gains as the Fed Chair, Janet Yellen, testifies today and may reconfirm that the Fed will continue to trim its asset purchases.

Equities

• The US 500 (SPI) moved lower yesterday reaching its low at 1837 before its rebound up to 1845.

Commodities

• WTI Crude (OIL) rebounded from its weekly low at 101.00 all the way up to 102.90 US dollars per barrel. The crude oil advanced after US Crude oil inventories reported only 0.1 million barrels and were less than expected during the previous week.
  

Mover & Shaker with FX Options

• Gold (XAU) collapsed from its four month high at 1345 down to 1322 US dollars an ounce. The precious metal failed to break above its four month high and fell on speculation that the Fed will keep its program to reduce stimulus.

• Options traders may consider constructing a Long Straddle on Gold and benefit from unexpected moves in either direction.

• A Long Straddle can be constructed by purchasing an at-the-money Call and Put.