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    A variety of EUR/USD option expirations may limit price movement ahead of US ADP data.

    by VT Markets
    /
    Sep 4, 2025
    On September 4 at 10 AM New York time, several EUR/USD FX option expiries are happening. These expiries range from 1.1600 to 1.1700 and may affect price movements. The close grouping of these expiries could lead to limited price action as the market adjusts. This might narrow the daily trading range before the US ADP employment data is released.

    Key Option Expiries

    Today, there is a significant cluster of EUR/USD option expiries, which should keep the currency pair stable between 1.1600 and 1.1700. This “pinning” effect suggests that range-trading strategies could work well in the short term. Traders should hold off on expecting major breakouts until after the 10 AM New York cut and the release of US ADP employment figures. This brief period of calm comes as central banks’ policies show increasing divergence, likely leading to more volatility in the weeks ahead. Recent data revealed that Eurozone inflation for August dropped to 2.8%, allowing the European Central Bank to pause its rate hikes. Meanwhile, the latest US Core PCE reading remains high at 3.5%, indicating that the Federal Reserve will stick to its strict policy.

    Volatility and Strategic Considerations

    Given this situation, buying volatility at these low levels seems wise. This calm market, influenced by options, may offer a chance to buy straddles or strangles ahead of significant data. A strong ADP number today, followed by tomorrow’s Non-Farm Payrolls report, could easily break this tranquil period and lead to a significant price move. In contrast to the aggressive rate hikes from central banks in 2023, the current policy divergence is more nuanced. This means that unexpected data could greatly affect currency movements. Therefore, we should be ready for volatility to return sharply once today’s option-related activities settle down. Create your live VT Markets account and start trading now.

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