UPDATE: Significant FX option expiries are scheduled for December 4, 2023, at 10:00 AM EST, impacting major currency pairs, especially EUR/USD and USD/JPY. Traders should be prepared for heightened market activity as options at key levels could limit price movements in the session ahead.
The most notable expiries for EUR/USD are concentrated between 1.1600 and 1.1700, with substantial options centered around 1.1650. This concentration is likely to keep price action within the current range, particularly as a weaker dollar supports the pair this week. However, the presence of these larger expiries may restrict volatility as they roll off later in the day.
In the case of USD/JPY, a key expiry level is set at 155.70, which aligns closely with the 100-hour moving average at 155.67. This alignment could limit potential upside movement for the pair in the immediate term. Despite this, USD/JPY has shown signs of weakness since yesterday, driven by a softer dollar and increasing expectations of a Bank of Japan (BOJ) rate hike this month.
Market analysts are closely monitoring these developments as traders react to the expiries. The evolving sentiment around the dollar and potential central bank actions are crucial components influencing currency fluctuations. As expiries approach, expect heightened trading volume and shifts in market dynamics.
Stay tuned for further updates as the situation develops. For more in-depth analysis and real-time insights, visit investingLive (formerly ForexLive).
