Currencies

• The euro (EUR) collapsed from 1.2577 all the way down to 1.2442 against the US dollar (USD). The single currency declined as Mario Draghi stated yesterday that government bonds may be used in order to stimulate the economy.
• The US dollar (USD) headed for gains against the Japanese yen (JPY), as it is now trading near 116.70. The yen remains under pressure with the BoJ Press Conference due tonight. Market participants anticipate that the sales-tax increase will be postpone and we may see the yen weakening even further.

Equities

• The European Indices rallied yesterday as Mario Draghi stated all necessary measures will be taken in order to support the European economy. The Germany 30 (DAX) rose from 9124 up to 9331 and the UK 100 (FTS) climbed up to 6629.

Commodities

• Corn (CRN) dropped from 388 down to 373 US dollars per Bushel and Soybeans (SOY) reached 1014 US dollars per Bushel, on speculation that US crop increased and push prices lower.

Mover & Shaker with forex options

• The British Pound (GBP) crashed from 1.5734 down to 1.5618 against the US dollar (USD). The sterling is trading near its 2-year low as the BoE is expected to keep the interest rates at a record low until the elections in May. The British yearly CPI will be revealed at 09:30 GMT with expectations at 1.2%.
• Option traders may consider buying a Put on the GBPUSD and gain if the pair moves lower, while the risk is limited to the premium paid.

Written by Evdokia Pitsillidou
Currency Strategist at easy-forex®