NY Open: Watching paint dry
Traders are on tenterhooks ahead of the release of the latest FOMC meeting minutes later today. They shouldn't bother. Fed board members have repeatedly flown the dovish flag in recent days, so why expect surprises?
Head of FX Strategy
Summary: EURUSD is heavy near range support and may push lower still as the Eurozone outlook sours more quickly than the outlook for the US, where the Fed continues to actively tighten. We trade the risk for lower EURUSD levels via a put option, given very low implied volatility.
Instrument: EURUSD put option, strike 1.1200, expiry May 15
Price Target: Spot price below 1.1000
Market Price: 72 pips, or 0.0072 (Spot ref: 1.1320 on Feb 13)
Risks: risk to this trade is 100% loss of the amount paid up front for the option premium.
Entry: 72 pips, or 0.0072 (Spot ref: 1.1320 on Feb 13)
Target: Price target: Spot price below 1.1000
Time Horizon: Short-term
Saxo Bank editors