Currencies

• The euro (EUR) continues its range bound trend between 1.3693 and 1.3733. The currency pair has seen volatility drop over the past two weeks while options investors are capitalising on the opportunity to buy options on the cheap.

• The US dollar (USD) is recovering yesterday’s losses against the Japanese yen (JPY). The pair had dropped to 101.10 yesterday morning before moving back up to 101.59 this morning.

Equities

• Investors continue their keen interest on US equities as M&A activity continues. The US 500 (SPI) jumped to 1880, the US 30 (DOW) to 16476 while the US Tech index (NDQ) rose to 3612.

Commodities

• Wheat (WHT) prices dropped to 6.63 dollars per bushel before rising to 6.81 as crop conditions in the US deteriorated. The US is the largest wheat exporter globally.

Mover & Shaker with FX Options

• The Australian dollar (AUD) has continues to drop against the US dollar (USD) reaching 0.9285 this morning. The Aussie was brought under pressure by the reserve bank of Australia’s meeting minutes released last night.

• Option traders may consider constructing a Bear Put Spread strategy on the AUDUSD and gain if the pair continues the downside with limited risk to the premium paid.

• A Bear Call Spread can be constructed by purchasing an at-the-money Put and selling out an out-of-the-money Put.