FX option expiries on 24 September: key strikes for EUR/USD, USD/JPY, USD/CAD

A couple of key expiry levels are worth noting for today's session, as outlined below.

The initial one is EUR/USD at 1.1400, where spot is just under the strike and within a 20-pip range at present. The pair has trended downwards for the entire week, with the dollar drawing solid buying interest, particularly as 10-year Treasury yields pushed beyond the 5% threshold to hit 5.11% — the highest reading since 2007.

Should trading remain pinned near this area in the coming session, the 1.1400 level could become a short-term focal point, making price action stickier as the cut approaches.

A decisive break from 1.1400 would lessen the impact of these expiries. At this stage, another leg lower in the bond market could readily prompt such a move, since it would bolster the dollar in today's trading.

Next, USD/JPY has an expiry at 157.50. That level is somewhat removed from current trading, so the expiry may have limited influence on the session's conditions.

As noted, dollar sentiment continues to be the primary factor right now, and USD/JPY also confronts a tougher technical barrier at the 200-day moving average, located at 158.43. That level is the key one to monitor for any upward moves.

These expiries could only matter if the dollar gives back some of yesterday's gains. In that scenario, they might serve a minor role in capping any downward price extensions.

Finally, USD/CAD has an expiry at 1.4100, a substantial one that sits almost exactly at spot. The size and closeness together elevate the likelihood of two-way, sticky trading around 1.4100 leading into the cut.

That could change if a more forceful catalyst moves prices away, and as mentioned above, the likely source would be a continuation of the bond market's selloff from yesterday.

For details on interpreting this data, see this post here or the Q&A below.