Lack of major FX option expiries and cautious sentiment around US-Iran tensions limit currency volatility as WTI crude holds above $100.
Currency markets show muted movement as no significant FX option expiries materialize today, reducing potential catalysts. Traders remain cautious amid ongoing US-Iran tensions, which continue to support oil prices above $100 for WTI crude, adding to broader market unease.
Yesterday’s hotter-than-expected US inflation report kept risk sentiment tentative, pushing bond yields higher. US equities closed slightly lower but recovered late in the session, while futures point to a modestly positive open today. Focus remains on geopolitical developments and US President Trump’s upcoming visit to China.
EUR/USD stays below 1.1800, and USD/JPY hovers near intervention risk levels, testing one-week highs. The dollar’s overall tone remains cautious, aligning with broader risk sentiment, leaving major currencies little changed ahead of the session.