Implied option volatilities have extended north on the back of spot's rally through 1.2900 to three-month highs. The 1-mth was last seen indicated at 5.85/6.05, having been 5.7 pct offered at today's European open. In the mid-dates: the Monday expiry date 2-mth was last seen indicated at 5.8/6.0.
The 2-mth was also 5.7 pct offered at today's European open. Exotic barriers reside at 1.2950. These are the peak triggers of Double No Touch options, carrying a cumulatively chunky payout, which are slated to roll off in the week before Xmas. 1.2700 is the base trigger of the DNT's. An Asian player is the name-in-the-frame re: the exotic options. Another batch of exotic barriers are located at 1.3000.
EUR/USD has not traded at 1.3000 since April 2005. 1.2980 (June 5 top) marks the traded peak through the intervening period.
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