Lots of talk about options today but USD/JPY is the only battleground
There is some chatter about big option expirations rolling off at the NY cut (1400 GMT) for EUR/USD and GBP/USD but I’m skeptical.
The USD/JPY expiries, however, are huge and they’re real:
- USD/JPY – 97.50 ($1.2B), 97.10 ($2B), 97.00 ($650m), 98.00 ($160m) 98.10 ($3.4B)
The cable option at 1.5650 is around $100m and the 1.5675 is even smaller and that’s just not big enough to have any kind of effect. The only other ones I can dig up that might influence markets are around 1.0400 in USD/CAD but with spot below 1.0330, that’s a stretch. Also keep in mind that U Mich consumer sentiment data will be released at the same time as the options cut so that could add some volatility.