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. The dollar is trading higher to start the new week, opening with a gap up as the US-Iran conflict comes back into focus. As such, dollar sentiment is the more important factor influencing price action as we look to the session ahead.
The 1.1400 level did help to provide some minor support to price action last week but the figure level is not likely to retain such attractiveness this week, given the circumstances. The expiries may yet still offer some pull for price action but dollar sentiment remains the bigger driver and influence at this stage.
And with 10-year yields in the US looking to get past the June high of 3.58% and equities seeing red, the broader market selloff is translating to a flight to safety/cash in the dollar. So, any further extension to the broader market mood will also help to underpin the dollar even more in the session ahead. Just be wary of that.
Besides that, there is one for USD/JPY at the 162.00 level. As mentioned before though, intervention risks remain the name of the game for the currency pair. And that will once again be the case this week.
The stronger dollar will allow USD/JPY buyers to poke and prod to test the limits of Japan’s ministry of finance. However, it will all come down to whether Tokyo officials will have the appetite to deliver a bit of a warning in not letting the pair run up too far, too fast.
As such, expect a more limited and muted impact from the expiries – as per usual.
For more information on how to use this data, you may refer to this post here.
This article was written by fl9bde53b91e184082bbe3aa3acaaf2cb0 at investinglive.com.