The euro is under broad pressure from geopolitical and growth headwinds, with large option expiry clusters the primary near-term anchor against a sharper selloff.

• Most EUR pairs trading heavy, weighed by Middle East standoff and growth concerns
• ECB on hold amid economic uncertainties; Germany has halved its growth forecasts
• Significant option expiry support: E14.2 billion between 1.1600-1.1695, E2.6 billion between 1.1700-1.1715, and over E2 billion between 1.1795-1.1800
• EUR/JPY heavy; E501 million in expiries at 187.15-25 likely to cap
• EUR/GBP heavy after yesterday’s fall to 0.8668; E1.8 billion in expiries between 0.8700-0.8800 to act as cap
• EUR/CHF the outlier, better bid at 0.9187-90 after recent push to 0.9160; SNB intervention suspected or signalled

The euro is trading on the back foot across most major currency pairs, weighed by a combination of geopolitical uncertainty stemming from the ongoing Middle East standoff and growing concerns over European economic growth. The European Central Bank look on hold amid the uncertain backdrop, while Germany, Europe’s largest economy, has cut its growth forecasts by half, adding to the bearish tone surrounding the single currency.

EUR/USD is trading a little soft. Option expiries are playing a significant role in shaping near-term price dynamics. A massive cluster of expiries totalling E14.2 billion sits between 1.1600 and 1.1695, providing substantial downside support through the session. A further E2.6 billion in expiries between 1.1700 and 1.1715 is exerting a gravitational pull on spot, while above E2 billion in strikes between 1.1795 and 1.1800 is likely to cap any upside attempts.

EUR/JPY is similarly heavy, tracking away from highs circa 187.95 late last week. An expiry of E501 million between 187.15 and 187.25 adds a further layer of resistance.

EUR/GBP is also on the heavy side.Option expiries totalling E1.8 billion between 0.8700 and 0.8800 are expected to act as a cap on any recovery attempt through the session.

The notable exception to the broad euro weakness is EUR/CHF, which is bucking the trend with a better bid tone, trading between 0.9187 and 0.9190 on EBS. The cross had recently pushed down to 0.9160, prompting speculation that the Swiss National Bank may have intervened, or at minimum signalled its discomfort with further franc appreciation, to stabilise the pair at lower levels.