Small USD/CAD options in play but technicals a bigger driver

Falling oil prices and turmoil in emerging markets are weighing on the Canadian dollar. The US dollar is higher against CAD for the fourth straight day. The pair touched a six-week high of 1.0448 in European trading as it breaks out of a wedge pattern.

USD/CAD daily chart

At the top of the hour, options with strikes at 1.0450 and 1.0460 expire. Together, the value of the two options only add up to about $100 million so they’re probably not large enough to move the market but it’s quiet so you never know. Bigger options are in EUR/CAD but they are priced well-below spot, however the pair is struggling ahead of 1.40, topping out at 1.3997. There are also some AUD/CAD options rolling off at 0.9500 and higher

There are larger USD/CAD expiries on Friday at 1.0285, 1.0310 and 1.0460.

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