Big Day Ahead for Forex Options: Key Expiries to Watch Before the New York Cut

Today marks a significant moment in the forex market, with several key forex options set to expire ahead of the New York cut. Traders and investors are keenly watching the developments, as these expiries could influence currency valuations and market dynamics. Here’s a detailed look at the major pairs and their significant option expiry levels:

USDJPY: A Whirlwind of Activity

Key Levels to Watch:
- At 148.00, there’s an expiry of 844 million USD.
- 1.46 billion USD set to expire at 147.00.
- 1.08 billion USD at 146.70.
- A combined 627 million USD at 146.10/20.
- A hefty 1.31 billion USD at 146.00.
- 443 million USD at 145.50.
- Between 144.90/145.00, a massive 1.98 billion USD.
- And several more significant levels ranging down to 143.00/10 with 763 million USD.

EURUSD: Where the Bulls and Bears Collide

Significant Expiries:
- 642 million EUR at 1.1120/30.
- A substantial 1.06 billion EUR at 1.1090/1.1100.
- 1.67 billion EUR – the highest – at 1.1050.
- Down to 1.0780/90 with 843 million EUR.

GBPUSD and AUDUSD: The Sterling and Aussie in Focus

GBPUSD:
- 508 million GBP at 1.2730.
- 655 million GBP at 1.2600.
AUDUSD:
- Ranging from 635 million AUD at 0.6840/50 to 885 million AUD at 0.6560/70.

USDCAD: A Tight Range of Expiries

Notable Levels:
- A high of 1.49 billion USD at 1.3440/50.
- Down to 865 million USD at 1.3300/10.

USDCHF and USDCNH: The Undercurrents

USDCHF:
- Major expiries include 898 million USD at 0.8570 and 1.25 billion USD at 0.8540/50.
USDCNH:
- 721 million USD at 7.20 and 1.35 billion USD at 7.17.

These expiry levels are crucial for traders to monitor, as they can often act as magnets for price action leading up to the cut time. Large expiries can draw the spot rate towards them, leading to increased volatility. This is particularly true if the market rate is near these levels as the cut time approaches.

Market participants should brace for potential fluctuations and plan their strategies accordingly. Whether you’re a day trader, a long-term investor, or just keeping an eye on the market, today’s forex option expiries are undoubtedly a key event to watch.

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