The clock is ticking down to large option contracts rolling off at 14.00 GMT
Yep, another day but a similar story as large option contract expiries impact on price action
Further to my option post earlier, and various others, here's what's muddying the waters today:
- EURUSD:1.2250 (EUR 2.4bln) 1.2280 (1.9bln) 1.2300 (1.2bln) 1.2320-40 (920m) 1.2350-70 (1.25bln)
- USDJPY: 105.90-106.10 (3.8bln) 106.20-30 (800m)106.50-60 (1.4bln) 107.00 (1.25bln)
- GBPUSD: 1.4000 (520m)
Currently 1.2290 ,106.15 we can expect the general trend of the day to resume after expiry and right now we're seeing some decent USD supply as some money comes off the table ahead of FOMC expected rate hike. Seems the disappointment will be to the downside with a hike factored in for a while now.
GBPUSD has been underpinned by option support at 1.4000 down to 1.3950 and given a helping hand from stronger UK wages/jobs data.
Anyhow, some good two-way business expected into the top of the hour and indeed after.
Remember these are vanilla options and in play right up until expiry even if breached in the meantime unlike barrier options which cease to be once broken.
For more info on how to use this all data, please refer to my post here.
