All indications are that euro pairs being marked lower and risk-on plays in situ too but beware DNT interest
I highlighted these contracts on EURUSD being taken out on 26 June
China being the main player cited
"Learning from sources that players are looking at EURUSD DNT's with ranges 1.0725/1.1675, 1.0750-1.1700,and 1.0850/1.2000 all being asked/priced up yesterday in the options market effective from Wednesday, the day after the 30 June Greek deadline"
These are 3 month contracts and will be very much in play and expect the first level to be defended heavily
For those unfamiliar a DNT is an option that gives the trader an agreed-upon payout if the price of the currency pair does not reach or surpass one of two predetermined barrier levels. The traders pays a premium and in turn receives the right to choose the position of the barriers, the time to expiration, and the payout to be received if the price fails to breach either barrier. With this type of option, the maximum possible loss is just the cost of setting up the option
My view remains that despite an initial wobble there is too much vested interest to have the euro collapse, with or without a Greek deal.
