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During the session on Wednesday, the market could be fairly volatile, basically because of a plethora of announcements. We have the ADP Nonfarm Payroll Numbers coming out of America, which of course can move the US stock market. We also have Crude Well Inventories, which of course can have an effect on the WTI Crude Oil markets. The monetary policy Committee Statement out of the United Kingdom could also move the British pound and the FTSE.

1 – With that being the case, the market will probably favor volatility in general, but we believe that the GBP/USD pair should continue to consolidate between the 1.55 and the 1.57 levels, offering a short-term trading environment that we can continue to go back and forth in. Any type of pullback in this area should offer call buying opportunities, as we anticipate a little bit of “risk off” before the MPC announcement, and the British pound could pull back a little bit as a result, offering opportunity.

2 – Gold markets initially fell during the course of the session on Tuesday, but found support at the $1080 level. Sibley put, if we break down below the $1080 level, we would anticipate that this market should continue to fall quite a bit. We do believe eventually this market heads down to the $1000 level. Any rally at this point time would look suspicious, and as a result we are looking to buy puts in gold even after rallies, as there is so much in the way of negativity.

3 – The DAX rose slightly during the course of the session on Tuesday, and as a result it's only a matter time before we continue to go higher. We are buyers of calls as the market should then head to the €11,800 level, which was the most resistance that we've seen for a while.