FOMC Pushed Dollar Higher
Washington (Nov 2) Currencies - The euro (EUR) was not helped by the Fed’s commitment last night to continue with Quantitative Easing. The single currency has fallen to 1.3702 down from 1.3811 earlier. Look ahead for EU unemployment being released this afternoon for the state of the labour market in Europe.
The US dollar (USD) has pushed higher against the Japanese yen (JPY) touching 98.64. From then it has somewhat corrected to 98.33 and may look for past support at 98.11. Look ahead for the Bank of Japan Conference this morning and US unemployment coming out this afternoon.
Commodities - WTI crude (OIL) has been sliding for weeks with no firm support in sight. Look at lower lows below 96.45 dollar per barrel as supply guts have been eased.
Mover & Shaker with FX Options - The US dollar (USD) advancing across the board has moved higher against the Canadian dollar (CAD). The Looney has weakened and the pair moved above 1.0482. Look ahead for Canadian GDP growth this afternoon against US unemployment for the next move on the pair.
Options traders looking at better than expected Canadian GDP data will be buying Put options on the USDCAD. To minimise premium costs, traders can sell out of the money Put options on the pair.