Vlad Demochko
Yesterday was a pretty profitable day for the buyers of option strategies. The level of volatility hit a new record. The currency pair passed more than 100 points.
The secondary option barrier at 1.5824 didn’t manage to withstand the volatility pressure. However, there were very few significant economic reports. The same Greek problem was one the market drivers. Greece is still under the threat of a default while the ECB and the IMF are not in a hurry to provide it with another loan. Moreover, yesterday Moody’s announced that it might cut the ratings of some of the major banks in Europe - BNP Paribas, Societe Generale and Credit Agricole.
Today’s news background is expected to be of medium weight: the UK’s CPI, RPI, trade balance and the USA’s export and import prices.
At the moment the currency pair is being traded around the option barrier 1.5824.
The Department of Options of doesn’t recommend buying option strategies to befit form higher volatility as the markets are currently overheated in terms of volatility.
Vlad Demochko
