EUR10.45 Billion in FX Option Expiries Could Hit EUR/USD Prices on August 31

On August 31st, foreign exchange option expiries for the New York cut at 10.00 a.m New York (1500 GMT) could impact currency spot prices.

A total of EUR10.45 billion in strikes are set to expire between 1.1600 and 1.1690 on Monday, which is likely to influence the spot price.

Gamma hedging plays a significant role when traders who are short of options hedge their exposure in spot. As the market approaches key strikes near the expiry time, hedging flows can increase and become one-sided, affecting spot prices.