Title: FX Option Expiries for 8 July – Key Levels to Watch as the New York Cut Approaches
Source: FX option data originally reported by Justin Low via ForexLive on TradingView — July 8, 2024
As another trading week begins, attention turns once again to the daily FX options expiry landscape, with notable strikes set to roll off at the 10AM Eastern Time (NY Cut) on Monday, July 8, 2024. Traders and market participants closely watch these levels, as large option expirations often act as magnets for price action and can lead to short-term volatility or support/resistance near expiry times.
Understanding the dynamics around option expiries is critical. These levels can significantly influence spot FX pricing due to hedging activities by option writers and counterparty flows. The impact is especially pronounced when sizeable expiries coincide with technically significant levels or critical economic events.
Below is a comprehensive breakdown of the major option expiration levels for Monday, July 8th:
EUR/USD – The Euro Remains Well-Represented in Option Expiries
– €2.05 billion expiring at 1.0800
– €1.50 billion expiring at 1.0750
– €834 million expiring at 1.0850
– €836 million expiring at 1.0900
EUR/USD continues to be a hotbed of options positioning, with clusters of expiries seen between 1.0750 and 1.0900 — a range that also lines up with recent trading activity. The €2.05 billion chunk at the 1.0800 level is the most significant and is expected to exert gravitational pull on price action as the NY Cut nears. This strike, combined with technical support around the same level, could act as a magnet should the euro continue to hover close to the level in early U.S. trading.
Traders will want to monitor spot activity as the pair consolidates from previous movements, with recent ECB commentary and U.S. yield fluctuations providing the backdrop for potential moves into expiry.
USD/JPY – Yen Option Expirations Monitoring Intervention Risk
– $1.6 billion expiring at 161.00
– $1.0 billion expiring at 160.50
The Japanese yen remains under close watch as intervention threats linger. Monday sees two substantial expiry levels between 160.50 and 161.00 — levels that remain close to historically significant highs. The $1.6 billion sitting at 161.00 is particularly noteworthy, serving both as a psychological barrier and a potential cap should fresh dollar gains resume into the session.
These strikes are crucial given the heightened sensitivity of the pair to any hinted or real action from the Bank of Japan or Japan’s Ministry of Finance. Traders should be alert to options-related flows seeking to hedge or take profits around these levels, particularly should spot approach or breach them during the U.S. session.
GBP/USD –
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