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 Japanese yen surged for a second straight day, with USD/JPY falling nearly 300 pips. WTI crude and gold also gained, while bond yields eased.
Today's market highlights:
The Japanese yen is without question the biggest mover today. USD/JPY opened near 159.00 in early Asian trading but has since dropped by almost 300 pips, touching a low of 155.85 earlier in the session. The pair has moved in a single direction throughout the day after sliding below the 158.00 level.
Japan's chief currency official, Mimura, did not comment on whether a rate check occurred, but such a check appears to have taken place either overnight or earlier today. Market participants are clearly taking the warning seriously, and may already be experiencing some impact from a modest intervention by Tokyo. This is pushing USD/JPY lower by 1.6% to 156.10 at present.
Meanwhile, ongoing US-Iran tensions are still supporting oil prices. WTI crude has risen more than 2% to $93, while Brent crude is up 1.5% to above $97 today.
Even so, bond yields continue to ease from their overnight highs. This is providing some relief to broader markets ahead of the US non-farm payrolls report due tomorrow.
The 10-year US Treasury yield is 2 bps lower at 4.774%, and the 10-year Japanese government bond yield has also fallen back to 2.97% today. In Europe, Germany's 10-year yield is slightly lower at 3.35%, while France's stands at 4.22%. This appears to be a retracement for now, so market sentiment remains cautious.
This cautious mood is mirrored in equities, as US futures remain subdued ahead of the open. European stock indices are showing a mixed performance so far today.
Elsewhere, gold is staging a modest rebound, rising 1.3% to $4,443. In cryptocurrencies, Bitcoin is also slightly higher, up 0.6% at $77,897 today.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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.
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