Decent reversals for EURUSD after solid early gains on Draghi comments 25 Jan
Helped now by general USD demand playing out and we’re down to 1.2465 from 1.2538. Comment by Draghi ruling out a rate hike this year also in play but are we really surprised by that statement?
Barrier option at 1.2500 now history anyway with stops triggered to post those highs in a hurry but I’ve also highlighted USD 950m of vanilla expiries at 1.2500 and they’re still in play right up to 15.00 GMT.
Coincidence the end of the presser cleared the way for punt lower to protect 1.2500 interest.? I don’t think so. Not the whole reason admittedly but definitely in the mix.
Remember these are vanilla options and in play right up until expiry even if breached unlike barrier options which cease to be once broken.