• EUR/USD posts new lows since Aug at 1.1405 Tues - held by 1.1400 option barriers and more tech supports

• FX options now well primed for deeper FX declines but expect premiums to increase again if 1.1400 breaks

• Aside from the broad demand for lower strike options, dealers report more interest to buy specific dates

• Post July 29 and Sept 16 Fed are increasingly popular, as are US jobs and inflation data releases in that time frame

• If July 17 Fed anything to go by - upcoming Fed meetings can create more of the volatility upon which FX options thrive
EUR/USD daily chart (EBS)


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