The break above the previous high at 1.0250 has meant that many options players are being forced into hedging at these levels. There is also talk that many corporate players were ‘lazy’ about their hedging and had presumed that 1.0250 would be the top for the most of this year. They are also having to buy some cover. Reports of 1.08 calls being bought shows just how nervous the market is of further moves higher.
Barrier options are rumoured at 1.0300 but not in great size.
