FX option expiries for 4 June 10am New York cut
There are just a couple of expiries to take note of on the day, as highlighted in bold below.
The first ones are for EUR/USD with the larger one at the 1.1600 level in focus. The figure level has been acting as a bit of a floor for the currency pair in the past few weeks, so the expiries here could help to add another layer to that in trading today.
That being said, the market mood is starting to turn now with equities retreating with there still being no US-Iran deal. A framework agreement is fleeting and that’s keeping the dollar in a firmer spot as well. As such, the overall market mood will still be the number one driver to influence price action more so than the expiries above.
There are also some large-ish ones at 1.1570 and 1.1640-50 but are unlikely to factor too much into play.
All else being equal, the dollar should once again hold firmer in the session ahead so perhaps the ones closer to 1.1570 may see some light pull factor. But in the context of it all, it will be the risk mood and broader dollar sentiment driving price action rather than the expiries.
Then, there are some big ones for USD/JPY layered in between 159.50 through to 160.00. But as mentioned since the start of the week already, the expiries are not what will matter for price action in the pair.
Right now, it is all a psychological game with traders testing the limits of Tokyo officials with price nudging towards the 160.00 mark. We already saw a bit of volatility from likely profit-taking yesterday but the pair is still continuing to knock on the door of the figure level.
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.