FX option expiries for 25 May 10am New York cut
There are just a couple of expiries to take note of on the day, as highlighted in bold below.
They are for EUR/USD at the 1.1600 and 1.1635 levels. They don’t tie much to any technical significance but the ones at 1.1635 may just act as a bit of a magnet for price action in the session ahead. That especially since it is a holiday in most of Europe, even if some markets might still be open today.
But as a reminder, UK and US markets are closed and that also takes out a big chunk of liquidity from broader markets and flows from other asset classes.
So, there might not be too much interest for price action to move around even if we are already seeing a gap up in the currency pair following more positive US-Iran developments.
There was a report by the NYT saying that Iran has agreed to give up enriched uranium in a deal that is going to be announced. The optimism in markets is building mostly on the hope that said report will turn out to be true with some agreement in principle to also open up the Strait of Hormuz.
That is keeping the dollar pressured with oil prices and bond yields also falling sharply to start the new week.
But circling back to EUR/USD, the 200-hour moving average is helping to keep a lid on things at the moment with the key near-term level seen at 1.1642. So, that will help to give the option expiries some relevance as well amid thinner liquidity conditions in the day ahead.
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.