Little impact from FX option expiries seen on 5 October

No significant expiries are noteworthy today, as no specific levels are near enough to spot to exert a notable influence on price.

Some bigger expiries exist for EUR/USD at 1.1300 and 1.1325, yet they are too distant from current levels to hold much relevance at this stage.

The situation is similar for USD/JPY, where a much larger $2.0 billion expiry at 156.00 sits roughly 180 pips away. Consequently, it should have minimal practical effect unless USD/JPY experiences a significant decline during the coming session.

Against this backdrop, trading sentiment will keep being driven largely by macro factors rather than options. In that regard, the bond market remains the main area to monitor as the new week begins.

For now, long-end Treasury yields stay persistently elevated even after last Friday's softer US jobs report. The September labour data indicated non-farm payrolls increased by only 29k, far below forecasts, and the unemployment rate edged up to 4.2%.

Following the release, 10-year Treasury yields initially dropped to a low of 5.16%. That move was swiftly reversed though, as yields rebounded to roughly 5.28% by Friday's close and are now around 5.26%.

This further bolsters the argument that persistently higher yields are the main stress point for broader markets. Such dynamics are expected to continue impacting major currencies and the dollar today.