The new trading week has opened on a quiet note with Europe out celebrating the May Day holiday.  The US dollar continues its downward slide, precipitated last week by comments from Fed Chairman Ben Bernanke signaling that the end of rate hikes is in the near future.  Higher oil prices and continued tensions with Iran also placed downward pressure on the Greenback.  Economic data out this week includes the much anticipated Non Farm Payrolls on Friday morning, as well as Personal Income (Monday) and ISM Manufacturing data (Wednesday). 

Vols are unchanged to slightly softer, again because of todayââ,¬â"¢s holiday.  Skews continue to favor upside calls, namely in JPY and EUR.

OPTION TRADE IDEAS
 
Below please find some strategies, which depending on your view might be applicable.  Please bear in mind that all of these trades can be applied to any of the currency pairs, which may be traded.  All barrier levels, strikes, triggers, payouts, and maturity dates can be tailored to each individualââ,¬â"¢s views.

Kathy Lien is the Chief Currency Strategist at FXCM.

Disclaimer: Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.