FX option expiries for 11 May 10am New York cut

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There are a few expiries to take note of on the day, as highlighted in bold below.

The first ones are for EUR/USD at the 1.1725-50 levels. They don't tie much to any technical significance but as the dollar keeps firmer on the day, the expiries could help to hold a bit of a range to any downside price action in European morning trade. That especially if any pullbacks to risk sentiment are kept more in check, as it is now.

US-Iran headlines remain the key risk with the conflict being the number one driver of trading sentiment still. The latest development is that US president Trump isn't happy with Iran's proposal, labelling it "TOTALLY UNACCEPTABLE!". That and the fact that traffic along the Strait of Hormuz remains more or less at a standstill means nothing has changed since last week.

So, back to the drawing board we go in that regard.

With the dollar keeping firmer, that's also pushing USD/CAD slightly up and just away from the large chunk of expiries at the 1.3650-60 levels. It's not too often that we do see such large expiries for the pair but the market timing still argues for dollar sentiment and the general risk mood to be bigger drivers of price action currently.

As such, the pull factor of the expiries may not be too impactful as we get into the new week. However, it is worth noting as any retracements could see price action gyrate closer to the expiries before they roll off later in the day.

Besides that, just keep an eye out for intervention risks with regards to USD/JPY as the pair flirts with levels above 157.00 again.

For more information on how to use this data, you may refer to this post here.

This article was written by Justin Low at investinglive.com.

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