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 layered between 1.1600 to 1.1625. The expiries don’t tie to any technical significance but could act as a floor level in keeping price action more in check during the session ahead. That especially the ones at the figure level at 1.1600.
That region looks to be the floor for EUR/USD price action over the past two weeks and the expiries above are likely to help reinforce that, barring any new developments from the US-Iran deal.
The geopolitical factor remains the number one driver of trading sentiment of course, so headline risks are still the most important thing to note. But unless there are fresh leads, the market mood will stay as it is since last week with major currencies caught in a bind awaiting the deal to be announced.
Then, there is one for USD/JPY at the 160.00 level. As much as there is interest surrounding the key psychological level, the expiries are not the biggest influence here. It is all about intervention risks.
The fear for traders in pushing USD/JPY to the figure level is that Japan’s ministry of finance could lay down the hammer and intervene once more. So, that is the more important factor at play when it comes to viewing the currency pair at the moment.
The expiries should not offer much of any impact as such, with traders already being rather guarded in not wanting to incur the wrath of Tokyo officials. That especially without any further US-Iran developments to back them up for now.
For more information on how to use this data, you may refer to this post here.
