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BUZZ-COMMENT-Beware some huge G10 FX option expiries this week

Credit: REUTERS/DADO RUVIC

FX option expiries can impact FX price action by potentially attracting the spot rate as the 10 a.m. New York cut expiry nears, due to related delta hedging action.

Sept 21 (Reuters) - FX option expiries can impact FX price action by potentially attracting the spot rate as the 10 a.m. New York cut expiry nears, due to related delta hedging action. So it's worth knowing where the big strikes reside in advance and there are some big ones in the major pairings this week.

Thursday is the big day for EUR/USD, with EUR 2.7-billion at 1.1800, and another EUR 2.5-billion between 1.1825-50. Tuesday sees EUR 2-billion between 1.1800-20.

The stand out strike for GBP/USD is 1.2950, where almost £1-billion will expire on Tuesday, while in EUR/GBP on Thursday, EUR 3.2-billion 0.8700 strikes will expire, although they are unlikely to factor, given their distance from the current spot rate.

For AUD/USD - Friday sees AUD 1.8-billion 0.7300 strikes expire, while in AUD/NZD, there are 1-billion 1.0940s due to expire on Thursday.

In USD/JPY on Tuesday, there are $1.2-billion between 104.35-50, and on Wednesday - $1-billion 104.50-65. Thursday sees $1-billion at 104.00, $1-billion between 104.45-55, and $2-billion 104.90-105.00. Friday has $1.2-billion between 104.30-50, $650-million at 104.70, and $650-million at 105.00.

For more click on FXBUZ

EUR/USD option expirieshttps://tmsnrt.rs/2Hg7Zbv

USDJPY option expirieshttps://tmsnrt.rs/3cifDgY

(Richard Pace is a Reuters market analyst. The views expressed are his own)

((Richard.Pace@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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