There are just a few expiries to take note of on the day, as highlighted in bold below.
They are for EUR/USD at the 1.1350 and 1.1430 levels. That being said, the expiries should not have much of any impact barring any major surprises.
The dollar is back in control again with EUR/USD dipping back under 1.1400. So, I’d pin offers at the figure level and the 100-hour and 200-hour moving averages at 1.1407-20 to be more important levels to watch in terms of price action at the moment. And that will be the upper limits to be mindful of should we get to any surprises from the euro area PMI data later.
But with markets already leaning heavily towards the ECB acting in September next, I don’t see how the data today will shift the conversation really. Inflation numbers are more important at this stage, as well as how things are playing out in the Middle East.
Dutch TTF gas futures have surged by over 40% in July, rising back to near the peak seen in March. So, that is the more concerning development for the inflation outlook in the euro area.
As for the expiries at the lower bound around 1.1350, they don’t tie to any technical significance. As such, I wouldn’t put much emphasis on that as being impactful on price action in the session ahead.
Besides that, there are a couple of large ones for AUD/USD above the 0.7000 level but they shouldn’t see much impact considering that we are some distance away from seeing the spot price get pulled in.
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.