The EUR/USD FX options market is said to be long gamma, which can have a significant impact on the current EUR/USD FX spot price.

Long gamma is effectively owning short-dated expiry options with strikes not too far from the current FX spot rate.
Such options benefit from FX volatility, which is currently lacking.
Those long gamma can either sell the option to try and recoup some premium or continue to buy and sell cash around the strikes to capture whatever volatility they can.

Long gamma positioning can therefore further restrict realised volatility due to those hedging flows and consequently pressure option premiums via implied volatility sales.

Traded options data does show a swathe of existing and soon-to-expire FX option strikes nearby, especially in the 1.09-1.1050 zone over the next couple of weeks.
Markets are focused on Thursday's U.S. CPI data and those long gamma are looking for some related volatility.

Falling FX option implied volatility reinforces the long gamma situation and also reflects the traditional summer lull, with potential for sub 1-month expiry implied volatility to revisit Junes long term lows if the U.S. data fails to excite.
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