Welcome Guest:
Sign Up
A Data Partner of:
Refinitiv
Sep 23 - 12:12 PM
EUR/USD - FX Options Wrap-GBP Still In Brexit Storm; EUR/USD Outlook Clues
First appeared on eFXplus on Sep 23 - 10:00 AM

Brexit worries continue; the latest episode is Tuesday's UK supreme court verdict on whether UK PM Boris Johnson illegally prorogued parliament.
Opposition Labour party's Brexit policy will be settled in a vote late Monday.
However, overnight expiry cable options are only marginally higher and below recent median, suggesting tame GBP reaction nL2N26E0CA.
One-, two- and three-month GBP vols extend gains, however, on expectations GBP volatility will increase, after the former's 3.0 vol spike once it captured Oct.
17-18 EU summit and the latter's inclusion of a likely UK election nL2N26E05C.
Awful euro zone PMI knocked EUR/USD to 1.0966 Monday, but it's crawled back toward 1.1000 since.
No surprise given the 5 billion euro-plus expiry on Thursday, which will remain a draw nL2N26E04R.
Those expecting steeper spot declines won't get any reassurance from options, which barely reacted to Monday's weakness and clearly aren't positioning for rapid or bigger losses nL2N26E07K.
Big U.S. bank likes selling GBP/SEK spot nL2N26E066.
USD/JPY options signalling the most likely spot course for weeks, with today's setback reinforcing convictions nL2N26A07B


EUR/USD risk reversals: Click here

Tuesday Cable vol: Click here

GBPUSD vols: Click here

Source:
Refinitiv IFR Research/Market Commentary

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
!