FX option expiries for 5 June 10am New York cut

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

The first ones are for EUR/USD layered in between 1.1575 through to 1.1650. Of the ones on the list, the expiries at 1.1600 will continue to offer the most potential impact - similar to what it has been all week.

As mentioned before, price action for EUR/USD continues to resemble a floor closer to the figure level in recent weeks. As such, the expiries will add another layer to that in keeping price action more in range before we get to the bigger events later today.

US-Iran developments, the US jobs report, and of course Trump potentially coming in with another day-saving tweet to pump up the market, are all key factors that will have a bigger say on price action at the end of the day.

But in the meantime, we can expect the expiries around 1.1600-15 to at least help keep things more sticky in European trading. That unless we get any headline surprises during the session.

Then, there is one for USD/JPY at the 160.00 level once again. Just like it was the case for the whole week, the currency pair is pretty much caught in a psychological game currently. It's all about intervention risks, so nothing else will really matter.

And even with the expiries being close by and arguably a potential factor, it is all about the willingness of traders to push the limits of Japan's ministry of finance. And in turn, the focus turns to the appetite of Tokyo officials to shoot down any upside push that overreaches.

As mentioned yesterday:

"It feels like the question is more of when and where exactly does Japan's ministry of finance want to draw a line on the price moves here. As such, I wouldn't attach too much significance on the expiries above with the invisible hand being a bigger influence come what may."

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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