On September 1, there are no major FX option expirations that are expected to significantly influence trading. Since both the US and Canada are observing a holiday, the trading session is likely to be quieter. There will be some minor expirations for EUR/USD and GBP/USD, but they are not expected to have a significant impact on the market.

Understanding Expiry Impacts

For more information on how to use this data, you can find additional resources on relevant trading platforms. Today’s slow start to September is expected due to the North American markets being closed for the holiday. In this quiet trading environment, we shouldn’t make too much of any small price changes. The minor option expirations mentioned are insignificant and won’t affect price movements. The main focus now shifts to the US jobs report for August, scheduled for this Friday. We are interested in whether the labor market is slowing enough for the Federal Reserve to rethink its approach. After a solid but not extraordinary addition of 190,000 jobs in July 2025, a similar report could bring a rate hike back into discussion.

Key Economic Indicators

This data is critical for shaping expectations before the Federal Reserve’s upcoming meeting later this month. Meanwhile, the European Central Bank (ECB), meeting next week, is facing a different challenge with slowing growth and inflation dipping to 2.2% in the latest report. The differing policies of the Fed and ECB continue to drive market trends. Implied volatility in major pairs like EUR/USD is noticeably low, hovering around multi-month lows of 6.5%. This indicates that options are relatively inexpensive, providing an opportunity to position for a potential price movement. An unexpected outcome in jobs data or from the central banks could lead to a quick increase in volatility. We view this as an opportunity to consider strategies that benefit from a stronger US dollar against a weaker euro. Given the low costs, purchasing simple puts on EUR/USD or creating put spreads could offer a defined-risk way to prepare for a potential decline. These strategies can help protect against downside risks ahead of the significant events that will shape the month. Create your live VT Markets account and start trading now.

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