Currencies

• The euro (EUR) remains near its one year low against the US dollar (USD) at 1.2938. The single currency remains under pressure as today the German Trade Balance will be announced and is expected to be at 17.3B.
• The US dollar (USD) rose to 105.22 before retracing back to 105.11 against the Japanese yen (JPY), as the Japanese Current Account were worse than expected at 0.10T, while the expected were at 0.18T. The greenback continues to be the strongest currency despite the low Non-Farm Employment Change on Friday which were at 142K new jobs, while the expected were at 226K.

Equities

• The UK 100 (FTS) closed on Friday at 6873 and it will be very interesting to see how it will react after the Scottish independence leads for first time in poll, as the sterling dropped by 160 pips.

Commodities

• WTI Crude (OIL) fell on Friday from 94.97 US dollars per barrel to 92.86, before rebounded back to 93.50 earlier today as the China slowdown its imports.

Mover & Shaker with forex options

• The British Pound (GBP) dropped on the opening by 160 pips, from 1.6323 to 1.6164 against the US dollar (USD), as the Scottish independence campaign comes ahead for the first time after the poll showed 51% votes “Yes”. The cable continues to be under pressure as the Scotland’s referendum will be on 18th of September which will decide the future of Scotland.
• Option traders may consider constructing a Back Spread Strategy with Puts on the GBPUSD and gain if the pair moves lower, while the risk is limited to the premium paid.
• A Back Spread Strategy with Puts can be constructed by selling an at the money Puts while buying an out of the money Puts at double amount.

Written by Evdokia Pitsillidou
Currency Strategist at easy-forex®