FX option expiries for May 19 at 10:00 Eastern Time include the following: – **EUR/USD**: EUR 375 million at 1.1150. – **GBP/USD**: GBP 559 million at 1.3300. – **USD/JPY**: USD 1.2 billion at 146.50 and USD 1.5 billion at 147.00. – **USD/CHF**: USD 159 million at 0.8420. – **AUD/USD**: AUD 563 million at 0.6525 and AUD 595 million at 0.6355.

USD/CAD Expiry Levels

– **USD/CAD**: USD 529 million at 1.3675 and USD 587 million at 1.3985. – **NZD/USD**: NZD 1 billion at 0.5915. Recent market trends show EUR/USD nearing 1.1300 as the US Dollar weakens. GBP/USD is approaching 1.3400 after a downgrade of US credit ratings. Gold prices have increased, trading around $3,250 per ounce after the downgrade and amid concerns over economic indicators and trade talks. China’s economy showed slower growth in April, particularly in retail sales and fixed-asset investment, though manufacturing impacts were milder than expected.

USD/CHF Movements and Implications

The May 19 expiry list includes key levels that might influence pricing, especially where large amounts are clustered. For instance, the 1.1150 level in EUR/USD, supported by EUR 375 million, may start to lose relevance as the price moves towards 1.1300 due to ongoing USD selling. This means that any attempts at recovery will face resistance from traders unwinding previous USD positions. GBP/USD has found support after the US credit downgrade and is climbing towards 1.3400, creating pressure on the 1.3300 expiry level (GBP 559 million). This level may lose significance unless we see a significant shift in market risk sentiment. Traders should watch for quick price movements that could pull the pair back to lower levels, although this seems unlikely without broader changes in market mood. The Dollar-Yen pair looks different, with USD 1.2 billion at 146.50 and another USD 1.5 billion at 147.00 close enough to current levels to influence pricing through hedging. If US Treasury yields rise again this week, these levels may act as boundaries, keeping the pair within that range. The volumes indicate a two-sided risk in this area. USD/CHF has USD 159 million at 0.8420, which is small and unlikely to affect intraday prices, especially with market focus elsewhere. Movement in the Swiss Franc has been limited without broader USD trends or local surprises, so volatility from this expiry is expected to be minimal unless unexpected news arises. In AUD/USD, there are AUD 563 million at 0.6525 and AUD 595 million at 0.6355. While these expiry levels are far from the current spot price, they could serve as psychological anchors. With slower data from China in April impacting retail and fixed asset investment, the Australian Dollar may remain under pressure, making the lower expiry levels more significant. USD/CAD has expiries at 1.3675 and 1.3985, both over half a billion USD. Reactions in the Canadian Dollar might be more sensitive ahead of these levels if oil prices fluctuate or changes occur in North American bond markets. When expiry strikes are this far apart and of moderate size, attention often shifts to how close the spot price gets to them. If movement builds as options maturity approaches, these levels will be more impactful; otherwise, their influence weakens. Finally, for NZD/USD, there is NZD 1 billion at 0.5915. This is noteworthy as it is close to where prices have paused. Given the weak Chinese data, the Kiwi, sensitive to Asia-Pacific events, might continue to face downward pressure, potentially making this expiry a short-term draw, especially if risk sentiment worsens around global trade. Gold trading near $3,250 suggests a softer appeal for the Dollar and ongoing refuge-seeking behaviors. Economic indicators and trade negotiations create additional uncertainty, making precious metals attractive. We expect derivative positioning to be influenced by the broader tone from the Fed and global risk appetite for the rest of the month. Create your live VT Markets account and start trading now.

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