A sizable EUR/USD option expiry at 1.1400 may limit volatility ahead of German, French, and Italian inflation data.
A significant EUR/USD option expiry at the 1.1400 level is expected to act as a price magnet, potentially muting volatility in the session. The expiry carries over influence from the previous day, with traders likely to cluster around the figure ahead of month-end and quarter-end flows.
Market focus remains on upcoming inflation prints from Germany, France, and Italy, which could trigger modest euro movement. Without surprises, price action may remain subdued as participants await the London fix later in the day.
USD/JPY continues to climb, breaking above 162.00 and reaching 2024 highs. Japanese authorities have not yet intervened, opting to monitor the pace of the move before considering action.