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    Traders pay attention to EUR/USD expiries at 1.1850 due to uncertainties surrounding the upcoming Fed meeting

    by VT Markets
    /
    Sep 17, 2025
    FX options expiries on September 17 are centered on the EUR/USD pair, especially around the 1.1850 level and potentially at 1.1900. Recently, the pair broke through a significant resistance level at 1.1800. This breakout favors buyers, but traders are being cautious ahead of the upcoming FOMC meeting. The expiries could help stabilize price movements during European trading hours.

    Focus On The Fed

    The Federal Reserve is the main focus, with few outside factors likely to affect trading sentiment. This information can help traders understand current market trends. Looking back at 2021, a major EUR/USD option expiry at 1.1850 served as a stabilizing point before a Fed meeting. We see a similar situation today, September 17, 2025, though the economic context and key levels have changed. The market’s attention is now on policy differences, which has been a key theme all year. The Federal Reserve is again in the spotlight, but the situation has shifted from fighting high inflation to managing a slowdown. The Fed funds rate has stayed at 5.50% for a long time, and the market anticipates a likely rate cut soon. US inflation has finally eased, with the latest CPI at a more manageable 3.1%.

    The European Central Bank’s Dilemma

    Meanwhile, the European Central Bank faces challenges with weaker growth and a Eurozone inflation rate of only 2.8%. This situation keeps pressure on the euro, as the interest rate gap with the US is still significant. The EUR/USD pair has struggled to stay above 1.0850 for the last quarter. For traders this week, a key focus should be the €2.5 billion option expiry at the 1.0800 strike price for EUR/USD. This level may act as a point of attraction for price movements, likely preventing significant changes until after the Fed’s announcement. Selling short-dated volatility could be a good strategy for those who expect the pair to remain stable until the central bank offers clear guidance. Create your live VT Markets account and start trading now.

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