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.
The US dollar rose after Fed Chair Warsh's hawkish remarks; market sees 46% chance of September rate hike.
The US dollar moved higher as Federal Reserve Chair Warsh delivered more hawkish remarks. He remained reluctant to offer forward guidance, but the market now prices around a 46% chance of a September rate hike. That probability is up from the low 30s, though still below the roughly 60% level seen about a month ago.
Warsh's speech was longer than expected, lasting close to 30 minutes.
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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.