FX option expiries for 5 October 10am New York cut
There aren’t any major expiries to take note of on the day, with there being no particular expiry levels sitting close enough to spot to have a strong pull on price. The full list can be seen below.
There are some larger expiries for EUR/USD at 1.1300 and 1.1325, but they are simply too far away from current levels to be particularly relevant for now.
It is the same case for USD/JPY, with the much larger $2.0 billion expiry at 156.00 being nearly 180 pips away. As such, that should have little practical influence unless USD/JPY sees a sizeable move lower in the session ahead.
Given the above backdrop, trading sentiment today will continue to ride on macro factors more than anything else. In that respect, the bond market will continue to be the key spot to watch as we get into the new week.
For the time being, long-end Treasury yields continue to remain stubbornly high despite the softer US jobs report on Friday last week. The September labour market data showed non-farm payrolls rising by just 29k, well below expectations, with the unemployment rate ticking slightly higher to 4.2%.
10-year Treasury yields initially fell on the release, dipping to a low 5.16%. However, the move was quickly reversed as yields bounced back to near 5.28% at the close on Friday and are hovering around 5.26% today.
That continues to make the argument that higher yields are still the main pressure point for broader markets. And that is likely to continue to influence major currencies and the dollar today.
For more information on how to use this data, you may refer to this post here and/or refer to the Q&A below.
