• Given their forward looking nature, options can offer FX outlook clues

• Options have demonstrated nerves about EUR/USD volatility and setbacks

• However, price action has been notably lacking demand for topside strikes

• Topside strikes would cover risk of renewed EUR/USD gains to higher levels

• There's been light demand for 1.0550-1.0600 strikes, but little above

• Suggests market not yet convinced EUR/USD can extend recent recovery

• Large and soon-to-expire Option strike can influence EUR/USD pre NFP
EUR/USD FX option strike expiries March 4-7


EUR/USD 25 delta risk reversals


EUR/USD FXO implied volatility

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