FX option expiries on 2 November highlight key levels

A couple of key expiry levels stand out on the day.

The first notable expiry is for EUR/USD at the 1.1150 level, with the strike sitting just over 30 pips from the spot price. Price action remains subdued below 1.1200, meaning these expiries could attract trading flow should the dollar strengthen. Positioned near the swing lows from late Friday and earlier today, the expiries might act as a magnet for further downside pressure in the session.

A USD/JPY expiry at the 158.00 level sits roughly 20-25 pips from the spot. The pair has experienced significant back-and-forth movement since last week, with daily gains consistently capped by the 158.00 mark. The expiries could therefore reinforce the short-term resistance, limiting upside extensions in the session ahead. On the larger charts, the 200-day moving average at 158.54 remains the key obstacle for any further topside moves.

Looking at the broader market picture at the start of the week, focus and attention shift toward the US midterms tomorrow. US futures are bouncing back somewhat today, with tech shares seeking a reprieve following the heavy losses on Friday. This is contributing to a slightly better risk mood to start the new week, though it is more of a fragile bounce than a genuine risk turnaround.

This encapsulates the current market mood, with traders reacting to a dollar that remains mildly on the back foot for now.