FX Positional Review

FX markets are moving, but the real story is in the options space. Some pairs are showing clear hedging pressure, while others are trading with remarkable complacency. The divergence between spot momentum and option pricing is creating opportunities, and risks… that aren’t obvious if you’re only looking at the charts.

Below, I break down what the skew and volatility surface are telling us across the majors, and highlight where traders are quietly paying up for protection versus where the market is leaving itself exposed.