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    On that day, traders are only interested in the EUR/USD expiry at 1.1700.

    by VT Markets
    /
    Aug 25, 2025
    One important foreign exchange option expiry to watch for on August 25 at 10 am New York time is for EUR/USD at the 1.1700 level. As the markets settle after significant shifts, these expiries could impact price movements around this level before the US market opens. Traders are currently holding steady on expectations for the Federal Reserve, but this could change when Wall Street gets active.

    Large Euro USD Option Expiry

    With the large EUR/USD option expiry at 1.1700, we see prices temporarily staying near this level. The market is calm for now, but this may just be a pause as traders get ready for the US session. This stability provides a short break before possible volatility later in the day. Market caution is reasonable, especially after last week’s US inflation report, which came in a bit higher than expected at 3.1%. Reflecting on the aggressive interest rate hikes from 2022 to 2024, traders are alert for any signs that the Federal Reserve may continue tightening its policies. This suggests that any long positions in EUR/USD could face challenges from a potentially stronger dollar in the upcoming weeks. In Europe, the situation is different. Recent PMI data from Germany indicates a slowdown in manufacturing, with the index staying below 50. This difference in policy, where the Fed may stay hawkish while the European Central Bank cannot, is an important trend. Derivative traders should think about positioning for possible EUR/USD weakness, as a strong US economy paired with a weak Eurozone economy usually puts downward pressure on the pair.

    Market Volatility and Trading Strategies

    Given the uncertainty, we’ve noticed 1-month implied volatility in EUR/USD options rising from its summer lows. This increases the cost of buying options but also opens doors for traders who expect the pair to break out of its recent range. Traders might consider purchasing put spreads as a cost-effective way to plan for a move down towards the 1.1550 support level we saw earlier this year. Create your live VT Markets account and start trading now.

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