FX Option Expiries: Navigating the 11 February 10am New York Cut
The upcoming US labor market report is set to dominate the market, but there are some FX option expiries to consider before then. Here's a breakdown of the key points:
No Major Expiries Before the Report: The list of expiries below isn't extensive, meaning the immediate impact on the market will be minimal before the US labor market report.
Soft Jobs Data Could Trigger a Reaction: If the jobs data comes in softer than expected, it could lead to a further decline in the dollar. This could potentially boost the EUR/USD pair, pushing it towards the 1.2000 level. This level has been a point of contention for the ECB, with ECB policymaker de Guindos acknowledging its "complicated" nature (https://investinglive.com/centralbank/ecb-policymaker-de-guindos-recent-euro-appreciation-deserves-attention-but-not-dramatic-20260210/).
Limited Impact of Expiries: The expiries themselves won't have a significant impact unless there are last-minute changes. The focus will remain on the US labor market report for the majority of the day.
Trading Sentiment and Risk Mood: The US labor market report is expected to be the primary driver of trading sentiment and risk mood today. For further insights on utilizing this data, check out the InvestingLive post (https://investinglive.com/Education/!/forexlive-education-option-contracts-their-impact-and-how-to-trade-off-them-20161116/).
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