• German IFO business sentiment worsened more than expected in December

• However, ZEW survey posts surprise recovery in December

• EUR/USD was little phased as overnight expiry option pricing had hinted

• Massive option shackles limit volatility - Friday's expiries biggest in 2024

• 1.0500 strike expiry now 9.2 billion euros for 10-am New York cut Friday

• There are 14 billion euros between 1.0450-1.0425 due to expire Friday

• Also 1.0525 strikes and 1.0550-55 strikes in a cumulative 11 billion euros

• If U.S Fed fails to excite Wed, path of least resistance is lower EUR/USD

• Trend in FX options is to hedge deeper EUR/USD declines in 2025 nL1N3NH0A5

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