Please use a PC Browser to access Register-Tadawul
BUZZ-COMMENT-Beware larger FX option strike expiries this week
Dow Jones Industrial Average DJI | 0.00 | |
S&P 500 index SPX | 0.00 | |
NASDAQ IXIC | 0.00 |
April 2 (Reuters) - The cash hedging of soon-to-expire FX option strikes can influence FX price action by adding to any nearby support/resistance while potentially drawing and containing spot near the strikes, and there are large ones worth noting for the week ahead.
EUR/USD has over 2-billion euros expiring between 1.0735-55 on Tuesday April 2. On Wednesday there are 600-million euros at 1.0695 and 1.8-billion between 1.0815-25, Thursday has almost 1-billion euros at 1.0700, 750-million at 1.775-85 and 850-million at 1.0800-05. Friday has 1.7-billion euros between 1.0700-20 and 2.1-billion euros between 1.0790-1.0825.
Standout USD/CHF strikes this week are on Wednesday at 0.8950 on $1-billion, 0.9000 on $1.3-billion and 0.9075 on $442-million.
Larger GBP/USD strikes are on Tuesday at 1.2600 on 400-million pounds, Wednesday at 1.2400 on 541-million and 1.2570-75 on 300-million pounds. Thursday has 1.2595 on 429-million, 1.2660 on 525-million and 1.2720-25 on 315-million pounds.
AUD/USD strike expiries are on Wednesday at 0.6510-15 on A$690-million and Thursday at 0.6500 on A$664-million, 0.6510-15 on A$856-million and at 0.6525 on A$728-million. The biggest NZD/USD strike expiry is on Wednesday at 0.5900 on NZ$809-million.
The largest USD/CAD strikes are on Wednesday at 1.3595-1.3600 on $513-million, Thursday at 1.3595-1.3600 on 1.1-billion and 1.3650-55 on $875-million. Friday has 1.3500-10 on $1.2-billion.
Standout USD/JPY strikes are on Tuesday at 151.00 on $1.2-billion, 151.50-60 on $901-million and 152.00 on $594-million. If intervention happens before the 10am New York cut expiry on Wednesday, then beware a mega $9.7-billion 147.33 strike, although $600-million 151.50-60 strikes are currently more likely to factor. Thursday has $900-million at 151.50-55 and 1.3-billion at 151.75-80, with 2-billion at 153.00.
For more click on FXBUZ
(Richard Pace is a Reuters market analyst. The views expressed are his own, editing by Ed Osmond)
((Richard.Pace@thomsonreuters.com))