FX Options Insights 23/07/24
The FX options market is seeing increased interest in six-month expiry USD/CNH implied volatility, particularly due to the upcoming U.S. election and its potential impact on China's yuan. Meanwhile, EUR/USD FX option implied volatility remains low, reflecting a lack of actual or expected volatility. Demand for volatility protection is also limited despite potential threats from upcoming economic data releases. USD/JPY hedging has led to higher demand for JPY calls and implied volatility as more JPY shorts are being trimmed. AUD/USD has faced downward pressure due to concerns about the Chinese economy and falling commodity prices, but may find support near the 100-200 dma levels. One-month expiry implied volatility for AUD/USD has fluctuated, with an upcoming 0.6600 strike expiry potentially impacting the pair's near-term movements.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!