It's been a rapid fall for GBP as 15.00 GMT approaches 26 Feb
Large (GBP2.3bln) expiries today at 1.4000 and had earlier helped push the pair higher in thin Asia trading conditions with a defence at 1.4020 following.
I warned in an earlier post that we shouldn't rule out an attempt by the sell-side closer to expiry time and bingo, here we are at 1.3882 with longs being squeezed out and/or running for cover.
Some general USD demand helping but that's not the whole reason here by a long way as a quick flick through EURGBP, GBPJPY, GBPCHF et al will show. As I've said oft before ignore these expiries at your peril whether you believe in the potential impact or not.
Perhaps also a reality check on some of the Brexit comments from Labour's Corbyn & Co which could upseat the UK govt long before it leads to any softer Brexit outcome.
USDJPY has large interest today 107.00. EURUSD at 1.2250-60 and 1.2350
Remember these are vanilla options and in play right up until expiry even if breached in the meantime unlike barrier options which cease to be once broken.
For more info on how to use this all data, please refer to my post here.
