It has been very noticeable this week, both from the volumes and the names involved, that shorter-term option players are having a major impact on the price ranges that we are seeing.
Earlier in the week we saw significant offers appear every few pips as we rose into the high 1.06’s and last night it was the turn of the bids, with up to EUR1 billion on the bid every single pip around 1.0570.
Many of the bids dropped off at 4pm London time, another hint that we are dealing with s-t option players defending and trading their books.
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