Light option expiries and focus on tomorrow’s US inflation data limit major currency moves, with USD/JPY eyeing intervention risks near 160.
Major FX option expiries for the 10am New York cut on 11 August are minimal, offering little impetus for currency traders. Markets remain fixated on tomorrow’s US CPI report, the week’s key event, which is capping volatility across major pairs.
The Japanese yen continues to weaken, eroding gains from late July’s intervention. USD/JPY hovers near the 160 level, a psychological threshold that could trigger fresh official action. Last week’s softer US jobs data provides some counterbalance but has not shifted the yen’s trajectory.
Traders are cautious as Japanese authorities may intervene again, either jointly or unilaterally, to stem further declines. Without significant expiries or data today, activity in European morning trade is expected to remain subdued.