There is arguably just one key expiry level to take note of on the day, as highlighted in bold below.
That being for EUR/USD at the 1.1265 level, with the strike sitting roughly 35 pips away from the spot price. Should the euro manage to build on the hold above 1.1200, the size of the expiries is significant enough to potentially act as a price magnet. Having said that, the euro might find it tough to gather lasting bids as the broader sentiment is still weighed down by French political and fiscal concerns. The expiries on their own may not be enough to draw price higher in this instance.
Besides, there is also the dollar side of the equation to consider. The bond market remains in focus and Treasury yields have nudged back a little higher to start the week. 10-year yields are at around 5.12% today, up from around 5.09% in the early stages yesterday. That may not be indicative of much but if the bond market selloff begins to rear its ugly head again, that could quickly spill over to safety flows favouring the dollar.
If so, that will also push EUR/USD further away from the expiries to be relevant.
Besides that, there is also a decent-sized one for USD/JPY at the 159.00 level. However, it is more than 70 pips away and that arguably sits outside the immediate range of influence for now.
For more information on how to use this data, you may refer to this post here and/or refer to the Q&A below.
This article was written by Justin Low at investinglive.com.