The EU Morning Report - 151 thousand new jobs could shake the dollar - 07 March 2014
Written by the easy-forex team
- The euro (EUR) rose to 1.3862 from 1.3725 against the US dollar (USD) after Mario Draghi’s press conference yesterday. The central banker reinforced his confidence in the European system and belief in Eurozone growth.
The US dollar (USD) continues to advance against the Japanese yen (JPY) moving above 102.93. The greenback is set to shake the markets today as US Non-Farm Payrolls (NFP) are released. Analyst consensus rests at 151 thousand new jobs created any deviation from this may shake the market.
The US 500 (SPI) continues its push as the index touches 1879.01. Better US employment hints at better expectations for US equities.
Brent (BRT), the European oil benchmark, lost five dollar over the week, moving to 107.50 before correcting higher to 108.36 as energy prices globally remain under pressure.
Mover & Shaker with FX Options
Gold (XAU) prices rose to 1350 dollars per ounce from 1331 dollars per ounce yesterday morning. The precious metal may see volatility pick up should estimations of today’s NFP release prove wildly wrong.
- Options traders may consider constructing a straddle on Gold which capitalises on higher volatility.
- A straddle is constructed by purchasing an at-the-money Call and an at-the-money Put.
Currency strategist at easy-forex