Last weeks holiday week was for the most part uneventful. Although, a weaker than expected Nonfarm payroll number instigated a USD sell-off. The number came in 40,000 jobs lower then economists expected and the EUR/USD gained almost 100 pips on the news. Overnight the dollar corrected this move and is back to 1.2735 even below last weeks levels prior to the jobs report. Weekend reports of a larger then expected budget deficit in Germany can be blamed for this Euro plunge. The deficit, as reported by Der Spiegel, will be 3.1% of German GDP slightly above the 3% previous upper band. A slow week of economic news may result in another quiet summer week.
Volatilities are lower across the board due to light summer trade volume.
OPTION TRADE IDEAS
Below please find some strategies, which depending on your view might be applicable. Please bear in mind that all of these trades can be applied to any of the currency pairs, which may be traded. All barrier levels, strikes, triggers, payouts, and maturity dates can be tailored to each individuals views.
View: AUD/USD will remain range bound this week.
Trade: Purchase a 1 week AUD/USD Double No Touch Option
View: USD/JPY will decrease this week
Trade: Purchase a 1 week USD/JPY Digital put
View: USD/CHF will move to the upside this week
Trade: Purchase a 1 week USD/CHF One Touch Option
View: EUR/JPY will break out in either direction this week
Trade: Purchase a 1 week EUR/JPY Double One Touch Option
For further details, please contact the options dealing desk at 1.212.897.7660 or toll free at 1.888.50.FOREX.
