For today, large FX option expiries are noted for EUR\/USD around the 1.1700 level. These large expiries are expected to influence price action, keeping it relatively stable before the US PPI and weekly initial jobless claims are released. Additional expiries at 1.1715 and 1.1750 could keep movements within a range for the session.<\/p>\n
GBP\/USD has an option expiry at the 1.3600 level. This would likely limit upward price movement, combined with the highs from 23-24 July approximately at 1.3584-88. Despite this, the pair retains a bullish short-term outlook, with a weaker dollar influencing trade during the week.<\/p>\n
We are seeing a significant amount of options expiring around the 1.1700 level for EUR\/USD today. This concentration is likely to act as a magnet, keeping the currency pair from making any major moves for now. The market will be watching the US producer price data and jobless claims figures very closely.<\/p>\n
With today’s US PPI for July coming in slightly cooler than expected at 0.1% month-over-month, the dollar has softened. However, the massive option barrier at 1.1750 is preventing a significant rally in the euro. We believe traders should consider selling volatility, as the pair seems likely to remain pinned within the 1.1680-1.1760 range over the next week.<\/p>\n
Looking back at the data from the second quarter of 2025, we recall that Eurozone inflation remained stubbornly above the ECB’s target. This memory is preventing traders from aggressively selling the euro, even with signs of a slowing US economy. Selling strangles with strikes outside this expected range could be a viable strategy until a stronger catalyst emerges.<\/p>\n
For GBP\/USD, the 1.3600 expiry is acting as a temporary ceiling on prices. This is happening even as the pair shows a more bullish trend this week, supported by the weaker dollar. The highs from late July 2025 around 1.3585 are also adding to this resistance.<\/p>\n
Recent UK growth figures for the second quarter showed a modest but encouraging rebound, giving the pound some fundamental support. We think traders could use this short-term capping at 1.3600 as an opportunity to position for a potential breakout higher. Buying dips toward the 1.3550 area or structuring bull call spreads might be prudent in the coming weeks.<\/p>\n
Historically, August has been a month of lower volatility before activity picks up in September, a pattern we saw clearly in 2023 and 2024. These large option expiries are amplifying that seasonal quietness. This suggests that while range-trading strategies are wise for now, we should be prepared for a potential increase in volatility as we head into next month.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Large FX option expiries may limit EUR\/USD and GBP\/USD movement ahead of US economic data releases.<\/p>\n","protected":false},"author":62,"featured_media":17036,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-29036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/29036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=29036"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/29036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17036"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=29036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=29036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=29036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}