Currencies

• The euro (EUR) rebounded from its 10 month low at 1.3332 up to 1.3390 against the US dollar (USD). The single currency remains under pressure as today is the European Central Bank Press Conference (ECB) and the ECB is expected to keep the interest rates unchanged. All eyes are on Mario Draghi’s comments over his plans towards Eurozone’s recovery.
• The US dollar (USD) crashed down to 101.77 against Japanese yen (JPY), before the rebound back to 102.14. The US unemployment claims due at 12:30 GMT with expectations at 305K and better than expected results might push the pair higher.

Equities

• The European equities continue their bearish trend as the tensions between Russia and Ukraine are rising. The Germany 30 (DAX) fell to 9030, the France 40 (CAC) went to 4168 and the EU Stocks (ESX) to 3016.

Commodities

• WTI Crude (OIL) continues its bearish trend reaching 6-month low at 96.73 USD per barrel, despite the fall in Crude Oil inventories by 1.8 million barrels.

Mover & Shaker with forex options

• Gold (XAU) skyrocketed yesterday up to 1309 US dollars an ounce and rose more than 20 US dollars yesterday, as Ukraine’s tensions are rising, boosting the demand for the safe haven.
• Option traders may consider constructing a Long Straddle on the XAUUSD and gain if the pair moves in either direction, while the risk is limited to the premium paid.
• A Long Straddle can be constructed by buying an at the money Put and an at the money Call.

Written by Demetris Constantinou
Currency Strategist at easy-forex®