During the day on Wednesday, there are several announcements that could move the marketplace, but we have to keep in mind that the Federal Reserve Interest Rate announcement comes out on Thursday, which of course is the biggest market mover this week, if not the entire quarter. With this, reactions will be somewhat muted, but we do recognize that the employment numbers coming out of the United Kingdom can put a lot of focus on that part of the world, and of course crude oil could move due to the inventory numbers.

1 – We believe that the British pound will find buyers below, and we look at pullbacks in general on the GBP as an opportunity to buy calls. While the US dollar might be a little bit stubborn to give up gains to the British pound, we think it will gain against other currencies such as the Japanese yen and the Swiss franc once we start finding support.

2 – European indices look healthy, and we believe that pullbacks will offer call buying opportunities as well. This will be especially true if the US dollar strengthens due to the interest-rate hike that appears to be coming on Thursday, which should make the Euro cheaper. Keep an eye on the EUR/USD pair, as the lower it goes the better it will be for European equities in general.

3 – We still don’t like precious metals, and believe that rallies will continue to be put buying opportunities going forward. This could change a bit during the session on Thursday, but quite frankly any reaction will more than likely be temporary.