• EUR/USD pulled to a mega 5.4 billion euros of 1.0460-70 strike expiries

• There are also 1.4 billion at 1.0450 and 2.6 billion 1.0475-1.0500 Monday

• EUR/USD strikes dominate G10 option expiries all this week

• Shorter date expiry implied volatility down as German election risk pared

• 1-week is 6.75 and 1-month at 7.2 (1-month down from 9.0 to 6.75 in Feb)

• Risk reversals eased in Feb, but retain downside over upside strike premium

• Overall price action shows a lack of EUR/USD directional conviction
EUR/USD 1-week and 1-month expiry FXO implied volatility


EUR/USD risk reversals

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