Large forex option contracts rolling off today at 14.00 GMT 7 July
As per my regular daily post and other references this session we're seeing some option expiry impact playing out as we wait on US NFPs.
EURUSD has been drawn lower toward 1.1400-10 expiries worth $1.4bln and the USDJPY advance capped by 1.2bln rolling off between 113.90-00.
I say in my explanation post that we need to keep an eye on price action to get a feel but also when these contracts are struck. In both cases I flagged this up on my advance post on Monday when both pairs were lower. No surprises then that we should expect the sell/short side of to make an impact.
Remember that these are "vanilla" options so still in play right up to expiry at 14.00 GMT on the day even if breached in the meantime through NFPs, unlike barrier options which cease to be once hit.
For my latest post on how to use this info click here.
I don't do crystal ball or rune forecasts on data as regular readers will know but prefer to focus more on what actually comes out and what else might have influence.
Well today we have these expiries and G20 rhetoric to keep in mind so don't get too carried away on data alone.
Thanks for your company this week. As always I wish you good trading and remember,
