There is arguably just one to take note of on the day, as highlighted in bold below.
That being for EUR/USD at the 1.1650 level. The expiries don’t tie to any technical significance, so I wouldn’t attach too much impact on them for the day. That being said, we could still see the expiries limit any downside price extensions in the session ahead. That as traders are still digesting and figuring things out on the US Treasury decision to double buybacks at the long-end of the curve yesterday.
The announcement there is still the main driver of trading sentiment at the moment, with that having impacted the dollar mood heavily. The greenback fell hard on the headlines, as Treasury yields also fell off significantly at the same time.
Still, it is more than likely that such a move will only be short-term. That unless we do see inflation developments change up, with that also relying on how things are playing out in the Middle East.
But for today at least, the “Bessent put” might continue to reverberate and keep the dollar pinned down for now. Keep an eye on the bond market for any clues in that regard. A material pick up in yields could yet see the dollar rebound more strongly.
Besides that, there will be another big set of expiries for EUR/USD tomorrow with a massive one at the 1.1500 level. But all else being equal, it might not factor much into play after the recent events since yesterday.
For more information on how to use this data, you may refer to this post here.
This article was written by Justin Low at investinglive.com.