Currency option expiries on radar for Oct 8 NY cut

Several expiry levels are worth watching at the 10am New York cut on Tuesday, with the key ones marked in bold.

The EUR/USD expiry at 1.1150 is positioned roughly 50 pips below the current market price. While the size of this expiry is moderately relevant, it does not carry particular technical significance. However, among nearby expiries, it stands out as the only one close to the spot level, since the larger €5.7 billion block at 1.1300 sits much further away.

As a result, the 1.1150 expiry remains the more notable one to monitor, especially if the US dollar keeps gaining ground and EUR/USD edges lower during the session. This could lead to choppier price movement near the expiry level ahead of the cut.

Separately, a USD/JPY expiry sits at 158.00, less than 20 pips from the spot price. This may attract attention or help keep price action anchored around that figure level heading into the cut, assuming broader market moves do not override the options-related flows.

On a broader scale, bond markets are set to remain a key driver of dollar sentiment today. Treasury yields pulled back late in US trading yesterday but have rebounded during Asian trading this morning. The 10-year yield is still near multi-decade highs at 5.31%, while the 30-year yield stands at 5.69%.

If yields threaten another breakout, that could fuel a stronger dollar in European trading, with little else on the economic calendar to shift broader market sentiment.

For more on how to interpret this data, see this post and the Q&A below.