Focus is on US NFPs and wages data at 13.30 GMT but large options in play
If I got paid repeat fees like actors in TV shows I'd be a rich man this week. Stop me if you've heard this one before but I'd like to draw your attention, again, to some very large option expiries today as per my earlier daily post and numerous references yesterday, and today too.
- EURUSD: 1.2200 (1.8bln) 1.2280 (1.1bln)1.2300 (1.8bln) 1.2350 (2.2bln) 1.2450 (2.4bln) 1.2500 (1.7bln)
- USDJPY: 106.50 (USD 1.2bln)107.00 (4.5bln)
AUDUSD: 0.7820 (430m)
NZDUSD:0.7200 (NZD 300m)
- USDCAD: 1.2810-20 (USD 1.1bln)1.3000 (1.6bln)
The levels above are mostly all in play in theory and even if not hit on the extremes will still help to contain range.
Remember these are vanilla options and therefore in play right up until expiry at 15.00GMT even if breached in the meantime through the NFPs/other factors, unlike barrier options which cease to be once broken. Barrier Options still live:
- EURUSD 1.2600
- USDJPY 105.00 104.00
As I always say on these occasions believe in the power of options or not. but ignore at your peril. For more info on how to use this all data, please refer to my post here.
As for the US data it's wages that stand out for me again, as in the UK, and I repeat what I always say too on these occasions . I don't have a crystal ball so I never predict but we can as always expect an initial algo headline-led reaction to the always over-hyped data if wide of the mark so be ready with your entry/exit levels from whichever side you want to play.
Placing limit orders in advance can often be useful given the occasional speed of moves and subsequent reversals, although equally it can be prudent to wait and manually trigger executions once you've sized up the data in its entirety and gauged the price action.The devil in the data if often found in the detail.
Either way, don't forget those option levels.
