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Monday, January 08, 2007

FX OPTIONS: GBP/USD 1-mth & 6-mth ATM Strike Selling

I have been informed by one of my sources that 1-mth and 6-mth ATM option strikes traded at 6.65 pct earlier today. The 1-mth is 6.5/6.75 last. The 6-mth is currently 6.5/6.7. In the short-dates: the 1-week is 6.0/6.8 last. The key UK event risk encompassed by the 1-week is Thursday's BoE MPC rate verdict. It is expected to be held at 5.0%--despite a majority of the "Shadow" MPC (5-4) recommending another hike.

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