Major Option Expiries for EUR/USD

Today, there are significant FX option expiries for EUR/USD near the 1.1700 level. These expiries are likely to stabilize prices before the US PPI and weekly jobless claims are announced. Additional expiries at 1.1715 and 1.1750 may keep the price action within a narrow range for the session. For GBP/USD, there is an option expiry at the 1.3600 level, which may limit its upward movement. This aligns with the highs from July 23-24, around 1.3584-88. Still, the outlook for this pair remains bullish in the short term, as a weaker dollar drives trade this week. Today, there is a noteworthy cluster of options expiring around 1.1700 for EUR/USD. This concentration is likely to keep the currency pair stable for now. The market is closely monitoring US producer price data and jobless claims. Today’s US PPI for July came in slightly lower than expected at 0.1% month-over-month, causing the dollar to weaken. However, a significant option barrier at 1.1750 is preventing a strong rally in the euro. We suggest that traders consider selling volatility, as EUR/USD is likely to stay within the 1.1680-1.1760 range next week. Looking back at the second quarter of 2025, Eurozone inflation remained above the ECB’s target. This context prevents traders from aggressively selling the euro, even amid signs of a slowing US economy. Selling strangles with strikes outside this expected range could be a good strategy until a stronger catalyst appears.

Impact of Option Expiries on GBP/USD

For GBP/USD, the 1.3600 expiry is acting as a temporary ceiling on prices. This is occurring even as the pair displays a more bullish trend this week, supported by the weaker dollar. The highs from late July 2025 around 1.3585 add to this resistance. Recent UK growth data from the second quarter shows a modest rebound, providing fundamental support for the pound. Traders might see this temporary resistance at 1.3600 as a chance to position for a potential breakout higher. Buying dips near the 1.3550 area or setting up bull call spreads could be wise in the coming weeks. Historically, August has low volatility, with activity picking up in September, a trend seen clearly in 2023 and 2024. Large option expiries are contributing to this seasonal calm. While range-trading strategies are prudent for now, we should prepare for possible increased volatility as we approach next month. Create your live VT Markets account and start trading now.

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