Key FX option expiries to watch on 5 November

Only a handful of significant expiry levels stand out for today, with those highlighted in bold below.

The notable ones involve EUR/USD at the 1.1250 and 1.1275 strikes, which are positioned around the current spot price. These expiries could serve as boundaries, keeping price action within a narrower range during the session, barring any sharp moves in dollar sentiment or risk-related headlines.

The 1.1250 strike is particularly noteworthy as it sits near a key resistance area around 1.1254, which marks the 23.6% Fibonacci retracement of the decline from August to October. The expiries could thus anchor price action and encourage two-way flows ahead of the cut, as buyers look to push for a technical breakout today.

Elsewhere, the larger expiries for USD/JPY and GBP/USD are too distant from the current spot to have much impact on the day.

Broadly speaking, dollar sentiment and the overall risk mood are likely to be the two main factors driving markets today. Traders should keep a close eye on these as they gradually shift focus toward the US non-farm payrolls report due tomorrow.