FX option expiries for 15 October 10am New York cut
There are a couple of key expiry levels to take note of on the day, as highlighted in bold below.
The first is a rather chunky one for EUR/USD at the 1.1250 level, with the strike sitting just less than 40 pips away from the spot price. With the dollar retreating alongside Treasury yields as traders continue to digest the US September CPI report, that might keep this expiry level in play especially if the pair continues to nudge higher in the session ahead.
The near-term chart is also starting to turn with EUR/USD buyers breaking back above both the 100-hour and 200-hour moving averages in trading today, the first time in five weeks. That signifies a more bullish near-term picture but all eyes will be on whether Treasury yields will stick with the retreat or reverse back higher as we look to the second half of the week.
But if price action allows for EUR/USD to move closer to 1.1250, then the expiries could act as a magnet to draw price movements and keep trading action more limited around that level heading into the cut.
Then, there is one for USD/JPY at the 158.00 level – just 5 pips away from the spot price. The expiries could keep price action anchored around the figure level heading into the cut. But as mentioned, dollar pairs at the moment remain highly sensitive to moves in Treasury yields. And in the case of USD/JPY, there’s also intervention headlines to be mindful of. All of that could easily outweigh the influence of option expiries.
The other expiry level worth noting is for EUR/GBP at the 0.8480 level, with the strike sitting just 11 pips above the spot price. That could attract some attention if the cross trades higher, although the impact will depend on broader euro and sterling flows for the most part.
For more information on how to use this data, you may refer to this post here and/or refer to the Q&A below.
