BUZZ-COMMENT-Standout FX option strike expiries this week
Jan 6 (Reuters) - The cash hedging of soon-to-expire FX option strikes may bolster nearby support and resistance levels, while potentially having a magnetic effect on FX price action towards each day's 10-a.m. New York cut expiry, so it is worth knowing where the larger strikes reside in advance.
This week culminates with Friday's U.S. NFP data, so volatility might be suppressed within recent ranges ahead, making any nearby FX option strike expiries more likely to influence.
Larger EUR/USD strikes worth noting on Monday are at 1.0300 on 1.8 billion euros, 1.0350 on 965 million euros, 1.0380 on 961 million euros and 1.0400 on 820 million euros. Tuesday's are at 1.0300 on 3.5 billion euros, 1.0325 on 789 million euros and 1.0500 on 1.2 billion euros. Thursday's are at 1.0200 on 4.2 billion euros, between 1.0250-70 on 3.2 billion euros, 1.0300 on 2.5 billion euros, 1.0350 on 1.2 billion euros, 1.0440-50 on 1.7 billion euros and at 1.0500 on 1.7 billion euros. Friday's are at 1.0300 on 1.4 billion euros, 1.0315-25 on 1.6 billion euros, 1.0350 on 1.3 billion euros and 1.0400 on 1.8 billion euros.
Stand-out GBP/USD strikes expire on Monday at 1.2500 on 755 million pounds, Tuesday at 1.2465 on 406 million pounds, Wednesday at 1.2450 on 355 million pounds and Thursday at 1.2390 on 740 million pounds and 1.2435-40 on 590 million pounds. The biggest EUR/GBP strike expires are on Wednesday at 0.8300 on 1.4 billion euros.
Larger AUD/USD strike expiries are limited to Tuesday at 0.6190 on A$780 million, Thursday at 0.6270 on A$600 million and Friday at 0.6185 on A$1.5 billion.
The biggest USD/CAD strike expiries are on Monday at 1.4420 on $660 million and Wednesday at 1.4350 on $580 million and 1.4460 on $1.1 billion. Friday's are at 1.4170-75 on $2.1 billion, 1.4300 on 600 million and 1.4325-30 on $1 billion.
There is very little in the way of significant USD/JPY strikes expiring this week apart from on Wednesday at 157.50 on $1.5 billion.
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(Richard Pace is a Reuters market analyst. The views expressed are his own, editing by Ed Osmond)
((Richard.Pace@thomsonreuters.com))
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