FX option expiries for 7 August 10am New York cut
There are just a few expiries to take note of on the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1500 level. The expiries here don’t tie much to any technical significance, so it may not have all too much of an impact. That especially with the currency pair trapped in a tight range (7 pips only today) awaiting the US jobs report later. We might see some extension to price action in European morning trade but it shouldn’t lead to much.
The drop back below the 100-hour moving average of 1.1529 will keep things in check, after failure to test the 100-day moving average at 1.1567 currently. So, the expiries could just provide a floor for any downside price extensions in the session ahead with the bigger focus on the technical levels above.
As for any post-NFP run to the downside, that will see the 200-hour moving average at 1.1488 be in focus instead.
Dollar sentiment is still the key factor here, with traders slowly trying to get comfortable again in pushing USD/JPY back up. So, that i.e. intervention risks will remain a key consideration as well in ending the week.
Then, there is one for EUR/GBP at the 0.8550 level. But given the more muted sentiment expected in European trading ahead of the non-farm payrolls data release, I wouldn’t expect much of anything to really impact the currency pair here. So, even the expiries today will not likely see much of any major impact to really shift the mood.
Major currencies are likely to stay rather muted and quiet until we get to the US jobs report, all else being equal.
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.