There are just a couple of expiries to take note of the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1650 level. It is not one that ties to any technical significance but much like before, could help to keep a lid on price action as we look to the day ahead. That especially as traders remain watchful in awaiting headlines surrounding a US-Iran framework agreement/memorandum of understanding.
The news of a “deal” remain the biggest risk factor to market players at this time. As such, that will ultimately override the impact of anything else – including option expiries – if and when we see the headlines cross.
But in the meantime, the more tepid mood could see the expiries help lock down EUR/USD for a bit. However, price action will continue to be subject to broader risk sentiment as well. So, just keep that in mind.
Then, there is one for USD/JPY at the 159.00 level. I don’t see much of any impact on this one as the pair continues to be driven by more psychological factors at this stage.
The yen currency remains pinned down near 159.00 for a good one week now, with traders also reserving caution amid potential intervention risks if they push it too far closer to 160.00. Despite US-Iran optimism, the fact that the yen can’t get off the floor is a good tell on how bad the outlook is for the currency at the moment.
But for now, intervention risks will be what helps to keep things in check for the currency pair.
For more information on how to use this data, you may refer to this post here.
