Today’s FX option expiries may impact price movements for EUR/USD, AUD/USD, and EUR/GBP.
by VT Markets
/
Aug 8, 2025
The EUR/USD is currently trading around 1.1650. It is caught between significant expiries at 1.1600 and 1.1700, which may limit big movements today.
The AUD/USD is hovering near 0.6500. The presence of expiries is likely to keep the price steady, suggesting it will stay close to this level until the expiries are cleared.
Strength of the Pound Against the Euro
EUR/GBP is at 0.8675 after a decline, as the pound gained strength following a hawkish signal from the Bank of England (BOE). The current trading is supported by expiries and the 200-hour moving average around 0.8680, which may keep trading steady during European hours.
Large options are currently keeping EUR/USD in a tight range, indicating uncertainty. This aligns with recent data that shows Eurozone inflation decreased to 2.1% in July 2025. Meanwhile, the latest US jobs report was solid but not strong enough to influence the Federal Reserve’s decisions. Over the next few weeks, it seems likely that the 1.1600-1.1700 range will hold, making low-volatility strategies like selling strangles appealing.
The significant expiry at 0.6500 for AUD/USD is acting as a strong anchor today. This reflects a balance of negative and positive factors for the Australian dollar. We noted weaker industrial data from China last month, but iron ore prices have stabilized around $110 a ton, providing some support. Given the volatility of 2023, traders may treat this 0.6500 level as a pivot point for range-bound trades in the short term.
Policy Divergence Between the BOE and ECB
For EUR/GBP, the options at 0.8675 are creating a pause after the recent decline. This drop was influenced by the BOE’s greater concern about inflation compared to the European Central Bank (ECB). Recent UK CPI data for July 2025 showed a stubborn 3.5%. This difference in policy suggests that the easiest path is downward for the pair, so we may see this stability as a chance to position for further strength in the pound over the coming weeks.
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by VT Markets
Aug 8, 2025
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