There are just a couple of expiries to take note of on the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1400 level once again. With the dollar extending a little lower after the softer US CPI report yesterday, the expiries above may not factor too much into play. But with higher oil prices and higher yields, that could still lend a tailwind for the dollar to pull back some gains in the day(s) ahead. So, just be wary of that.
The expiries don’t tie to any technical significance, so the impact is not as solid. But if the dollar does regain some poise, expect bids layered at the figure level to perhaps help to keep any downside price extensions in check. And the expiries will help to add to that, if we do get there.
With US inflation data now out of the way, the focus turns back to headline risks with US-Iran developments being the main focus for dollar/risk sentiment this week.
Then, there is also one for USD/JPY at the 162.00 level. But as mentioned before, it’s all about intervention risks when it comes to the currency pair at the moment. The name of the game is to eye Tokyo’s appetite for stepping into the market but they seem to be content in letting price action keep around here without running up too far, too fast. The risk will come on any break above 163.00 next.
As such, don’t expect much impact from the expiries above for USD/JPY.
For more information on how to use this data, you may refer to this post here.
