FX option expiries for 20 July 10am New York cut
There are a couple of expiries to take note of on the day, as highlighted in bold below.
The first ones are for EUR/USD and they are layered in between the 1.1400 to 1.1450 levels. The expiries don’t tie much to any technical significance and so could just play a role in terms of limiting price action within that range as traders look to digest the broader market mood and dollar sentiment to start the new week.
The confluence of the 100-hour and 200-hour moving averages in the range of 1.1427-37 currently rests in between the expiries range. And for now, traders are also doing battle around that region. So, there is some added interest in keeping price action in between the 1.1400-50 level in the session ahead. That unless we get some notable headlines or a big shift in the risk mood to spark a change in dollar sentiment in European trading.
As things stand, dollar sentiment is still the key driver of price movements. However, that is still largely reliant on the market mood and oil prices as well. For now, there is some trepidation with US futures paring early gains to near flat levels on the day. Further selling there alongside higher bond yields will provide a backdrop to at least help to underpin the dollar to start the week. So, keep an eye out for that.
Then, there is a relatively large one for USD/JPY at the 162.00 level. But much like before, it isn’t one that is likely to factor much into play. That especially as USD/JPY price action continues to be largely driven by intervention risks at the moment.
With it being a Japan holiday, traders are more guarded as well with Tokyo officials potentially eyeing a potential call for action if the currency pair continues to keep testing their limits.
Even with the larger expiries set this time, I would not expect it to attract USD/JPY price action in the day ahead as such.
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.