FX option expiries for 13 August 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 and they are layered between 1.1500 through to 1.1550. That creates a bit of a similar conundrum as in the last few days. for the currency pair.
The downside will remain more limited, that especially now with the US CPI report out of the way. The inflation numbers were rather benign, so that’s not offering too much to work with and so the expiries alongside some bids near 1.1500 might help provide a bit of a floor for any downside price extensions in the session ahead.
As for the upside, I wouldn’t pin too much importance on the expiries at 1.1545-50 despite the large size. They might still help to keep price action more limited in European morning trade. But in the bigger picture, EUR/USD topside is capped by the 100-day moving average at 1.1565 for now. And that remains the key level to watch this week with any price extensions higher being pinned down by the technical resistance.
As things stand, dollar sentiment remains the key driver on the week. But in the absence of a spark from the US CPI report, traders will have to look to US-Iran developments and USD/JPY intervention plays as potential drivers instead.
Touching on USD/JPY, there is one set of expiries at 159.00 to watch out for. But as has been the case in the past, the expiries should not factor much into play at all. Intervention risks remain the name of the game for the currency pair and we are likely to see 160 as being the ceiling and key threshold for another push by Tokyo/US officials.
So, just keep a close watch on that as it has the potential to reverberate to other dollar pairs too.
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.