There are a couple to take note of on the day, as highlighted in bold below.
The first being for EUR/USD at the 1.1600 level. It is the same case as yesterday with the expiries not tying to any technical significance. However, it could just place a light ceiling on price action provided that there are no major headline shocks in impacting trading sentiment.
Yes, the bigger driver of price action right now remains the US-Iran conflict. As such, dollar sentiment is very much tied to the broader risk mood and subject to headline risks. So far, we've been seeing lesser headline jolts in the past few days. However, the Strait of Hormuz situation remains unchanged and that in itself is a key risk for markets as well.
So, just keep that in mind.
Then, there is one for GBP/USD at the 1.3350 level. That is one that keeps close to the 200-hour moving average of 1.3348, but I wouldn't expect either the technical level nor the expiries to see much material impact. The pair has been seeing a lot of pushing and pulling but more importantly holding below its 200-day moving average instead, seen at 1.3430 currently. That is the more important technical level in play for cable.
As such, the expiries might help to limit any downside pull during the session ahead. But in all likelihood, its impact will be rather minimal as traders are still more keenly eyeing broader dollar sentiment at this juncture.
For more information on how to use this data, you may refer to this post here.
Head on over to investingLive (formerly ForexLive) to get in on the know!
