EUR/USD option expiries at 1.1600 and 1.1635 for May 25 New York cut

EUR/USD has opened with a gap higher this morning, but trading is expected to be subdued as several major markets are closed for holidays. The pair faces option expiries at the 1.1600 and 1.1635 levels for the 10am New York cut on May 25, which could act as a magnet for price action in a low-liquidity environment.

The two expiries are the only notable ones for the day. The 1.1635 level in particular may draw price towards it, given that it is a round number and often serves as a pivot point. However, with UK and US markets closed, along with many European bourses, overall liquidity is thin. This can lead to erratic moves, but also means that option-related hedging flows may have an outsized impact. For forex traders, such conditions often result in price sticking near strike levels until the cut time. NowPrice's real-time EUR/USD quotes show the pair currently trading around 1.1620, within the range of the two strikes.

Looking ahead, the focus will be on how price behaves around the cut at 10am New York. If the pair remains between the two strikes, it may suggest a lack of directional conviction. Later in the week, with markets reopening, attention will shift to any fresh macroeconomic data or central bank commentary that could drive a breakout. Traders should monitor liquidity conditions closely, as thin markets can amplify moves triggered by smaller orders.