Large option contracts rolling off today 16 Sept 2016
I highlighted the large EURUSD interest between 1.1230-35 in my regular daily post and that's not only helping to contain the core pair but also exerting an influence over others too.
With EURUSD reluctant to drift too far away from that level even with the pressure of EURJPY supply we've seen an inherent demand in EURGBP help accelerate the move down in cable. Combine that with the option interest at 1.3250 and the picture becomes even clearer.
GBPJPY has needed little excuse therefore to post 134.01 before running into a bit of demand after finding good supply around 135.20
Offers around 0.8525 have capped the move up so far but we're still underpinned as I type after a move back down to 0.8516 and that in turn is capping cable again above 1.3170 after 1.3160 lows.
Many/some of you may remain cynical ( I don't know how many I've been able to convert over the past 3 1/2 years!) but ignore the large option expiries at your peril. My time as an interbank trader/market maker has taught me they can/will have impact.
