FX option expiries for 21 February 10am New York cut

There are a couple to take note of on the day, as highlighted in bold.

There are ones for EUR/USD layered through from 1.0440 to 1.0485. That might offer something to work with should the euro area PMI data later disappoint. But then again, with the ECB already set to cut rates in March there’s not too much downside to really hammer home at this stage. However, April is definitely a consideration but we’ll most likely have to see how inflation developments play out more importantly and then the ECB communique in the weeks ahead.

In any case, with the dollar in a tougher spot on the week, the 1.0500 level remains the more intriguing one at the moment. EUR/USD is flirting with a break of that key resistance and could manage that before the weekend. As such, I would argue the figure level is overriding the impact of the expiries at the moment when judging the balance of play on the field.

Then, there is one for USD/CAD at the 1.4200 level. It’s not one that holds much technical significance but it does rest in between the 100 and 200-hour moving averages of 1.4195-27 currently. The near-term technical levels are still keeping a downside push on the pair this week and the expiries might help to keep a lid on things before we get to the Canada retail sales and US PMI data later today at least.

For more information on how to use this data, you may refer to this post here.

This article was written by Justin Low at www.forexlive.com.