FX option expiries for July 4 at the New York cut of 10:00 AM Eastern Time are as follows: – **EUR/USD**: 555 million EUR at 1.1850. – **USD/JPY**: 600 million USD at 143.50, and 712 million USD at 143.60. – **USD/CHF**: 560 million USD at 0.7800.

AUD/USD Levels

For AUD/USD, the levels are significant: – 995 million AUD at 0.6400 – 1.6 billion AUD at 0.6500 – 2.9 billion AUD at 0.6600 This information is only for reference and should not be taken as investment advice. It’s essential to do thorough research before making any investment decisions. Risks exist, including the possibility of losing the entire principal amount. Investors are solely accountable for any risks they take. The data highlights the volume and strike levels of FX options expiring at 10:00 AM Eastern Time on July 4. These levels might attract spot prices due to the significant open interest around them. In AUD/USD, there is a clear buildup of sizeable expiries, starting at 0.6400 with nearly one billion in notional, increasing to 1.6 billion at 0.6500, and peaking at 2.9 billion at 0.6600. This creates a defined area where prices may gravitate, especially if they approach these levels before expiry. For EUR/USD, the 555 million at 1.1850 is relatively modest, but it may still influence the market if spot approaches that level. In comparison to the Australian dollar, the euro’s positioning is less robust, so it may have a secondary influence unless major macroeconomic factors impact it.

USD/JPY Levels

The levels in USD/JPY are particularly interesting. With 600 million and above 700 million positioned at 143.50 and 143.60 respectively, trading near these levels around expiry could lead to a tug-of-war as market participants manage their positions. Recent weeks have shown that tighter option groups can create volatility, especially when prices move towards these strikes during Asian or early London trading hours. The USD/CHF position of 560 million at 0.7800 is not strong enough to shift intraday flows significantly, but we note it for context if prices come close, especially in quieter markets. While smaller amounts like this shouldn’t be ignored, they gain importance during low liquidity periods. In terms of short-term volatility, it’s quite clear: when expiries cluster around current spot levels, they create a magnetic effect. Market makers managing their positions may need to adjust their hedges as delta becomes unbalanced, resulting in price movements or slowdowns depending on the direction. For instance, the Australian dollar’s layered expiries may either reinforce price breakouts or contain movements unless influenced by broader market forces. We expect this effect to persist unless significant macroeconomic news changes the balance. Spot traders might not pay much attention to these expiries, but for those in the options market or handling intraday risk, knowing where concentrations lie serves as a useful short-term guide. Instead of viewing them as fixed turning points, we see them as gravitational pulls; they don’t always dictate price movement but shape what is likely or possible. As we move into early July, we’ll watch closely to see if spot prices approach or retreat from these strikes in the two hours leading up to expiry. This is when hedging activities can intensify and influence price movements. Observing prices nearing or distancing from these populated option levels will be telling. While liquidity conditions and macro data can swiftly change the situation, the importance of large option expiries remains and emphasizes the need for layered analysis. Create your live VT Markets account and start trading now.

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