Traders have returned from the long holiday weekend to news of US Treasury Secretary Snowââ,¬â"¢s resignation.  President Bush has selected Hank Paulson, CEO of Goldman Sachs; as Snowââ,¬â"¢s replacement.  The Dollar had a slight recovery following the news but lost its gains relatively quickly.  The recovery was more a sigh of relief after rumors had been circulating that Bush would appoint Don Evans, former US Commerce Secretary, and it was widely believed that Evans would tend to favor a weaker dollar.  Paulson is known to have a good working relationship with Asian nations, particularlyChina which should help maintain flexible currency policies.

Volatilities are slightly better bid this morning.  Data out this week, including Consumer Confidence and Non-farm Payrolls are likely to keep vols firm.

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 individualââ,¬â"¢s views.

Kathy Lien is the Chief Currency Strategist at FXCM.

Disclaimer: Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.