Currency option expiries on radar for Oct 8 NY cut
Key FX option expiries for Oct 8 include EUR/USD at 1.1150 and USD/JPY at 158.00, with bond yields driving dollar sentiment.
Treasury Secretary Bessent says a small US outlay signals support for Japan's policies, which is bullish for USD/JPY, now at 155.09.
I read Treasury Secretary Scott Bessent's remarks as a positive sign for USD/JPY, everything else being equal.
The photo he shared, clearly set up, and his increasingly stern language appear more like verbal intervention than a serious push. His mention of a 'nominal' amount (with $5-10 billion on display) and 'signaling support' suggests no full-scale effort—comparable to the US supplying rebels with rifles and ammunition instead of deploying ground forces.
The dollar-yen pair has advanced 75 pips on the day to 155.09, a nine-day peak.
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Key FX option expiries for Oct 8 include EUR/USD at 1.1150 and USD/JPY at 158.00, with bond yields driving dollar sentiment.
EUR/GBP has fallen to its lowest since June 2025, adding to signs of euro weakness amid France's fiscal troubles and broader market concerns.
USDCHF traded above its 100- and 200-hour moving averages near 0.83291, but buyers still lack strong upside momentum.
USDCAD bounced off the 200-hour MA and crossed back above the 100-hour MA, keeping the uptrend intact.