**FX Option Expiries for 31 July 10am New York Cut: Analysis and Market Impact**
*Original information sourced from Justin Low, ForexLive, with expanded insights and additional context.*
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### Overview of FX Option Expiries
Foreign Exchange (FX) options are a critical component of the global financial landscape, influencing short-term volatility, liquidity, and even directional movement in the forex markets. The expiry of large FX option positions often exerts an observable impact on spot price action, especially as key levels in major currency pairs approach maturity during peak trading hours.
As we approach the 10am New York cut on July 31, attention is turning to a number of significant FX option expiries. These monthly and weekly expirations can create pivotal moments around certain key levels, increasing interest among both institutional and retail traders.
#### What is the New York Cut?
– The “New York cut” refers to the daily option expiry at 10am Eastern Time (15:00 London time).
– This is regarded as the global standard for FX option settlements.
– Volume and volatility typically increase as the spot market approaches significant expiry levels.
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### Major Option Expiries on 31 July
According to Justin Low and ForexLive, the most noteworthy option expiries for July 31, set to expire at the 10am New York cut, include the following:
#### Key Currency Pairs and Levels
**EUR/USD**
– 1.1000: 2.5 billion euros
– 1.1050: 1.2 billion euros
– 1.1100: 3.1 billion euros
**USD/JPY**
– 140.00: 1.4 billion dollars
– 141.50: 900 million dollars
**GBP/USD**
– 1.2800: 1.0 billion pounds
– 1.2850: 800 million pounds
**AUD/USD**
– 0.6700: 600 million dollars
– 0.6750: 700 million dollars
**USD/CHF**
– 0.8700: 550 million dollars
#### Other Noteworthy Pairs:
– USD/CAD at 1.3200 and 1.3250
– NZD/USD at 0.6200
– EUR/GBP at 0.8600
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### Why Option Expiry Levels Matter
Huge option expiries have the potential to “magnetize” spot prices, as market participants position themselves and hedge exposures ahead of expiry. This market dynamic is driven by:
– **Delta Hedging:** As expiry approaches, option writers (dealers) may buy or sell the underlying currency in order to hedge their positions.
– **Gamma Exposure:** The closer the spot price is to the strike price with significant open interest, the more aggressive the hedging, amplifying spot price volatility.
– **Market Psychology:** Many traders watch these levels, creating self
Read more on AUD/USD trading.