Traders report some of the euro selling this morning is options-related. Given we are not at extreme ends of the range, I guess it must be linked to an expiry today…Maybe 1.3925 vanillas rolling off? Not sure, to be honest.
1.3915 is the 61.8% retracement of yesterday’s rally. We’ve overshot it by a few pips to the downside but we may see some short-covering by fast-money types if we gather our footing around the present level of 1.3917…
