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Aug 07 - 08:55 AM

USD/CAD - Massive Option Hedging Can Impact USD/CAD This Week

By Richard Pace  —  Aug 07 - 06:35 AM
  • DTCC traded option data shows a massive impending USD/USD option strike

  • There are 3.3-billion USD's at 1.3325 expiring 10-am New York cut Friday

  • Related cash hedging flows to offset directional risk may affect FX

  • Can help draw contain if FX nearby strike and nothing else impacts market

  • USD/CAD big rally from 1.3152-1.3393 Friday, 1.3392/40 so far Monday

  • Falling 21-dma 1.3401 adds resistance. Thur's U.S. CPI only real FX risk

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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