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FX option expiries for 5 June 10am New York cut
There are quite a number to take note of on the day, as highlighted in bold.
The first ones are for EUR/USD at the 1.1380, 1.1400, and 1.1425 levels. The large ones in particular hold closer to the figure level and are likely to hold price action in and around the 1.1400 mark. That especially with the euro itself eyeing the ECB policy decision later today, even if market pricing already confirms a 25 bps rate cut. The odds priced in are at ~97% currently. So, the expiries should just act as bookends in case we see some extension in dollar sentiment.
Meanwhile, there are also ones for USD/JPY at the 143.00 level. That might play a role in locking price action a fair bit before we get the next swing in the dollar again. It has been a back and forth week for the pair so far, with the larger moves typically coming in US trading.
Similarly, that will also apply to the expiries for USD/CHF at the 0.8200 level. They aren’t ones to hold any technical significance, so any potential impact will follow the same as per the ones for USD/JPY above. But remember, dollar flows/sentiment is still the name of the game as we await more trade headlines and the US jobs report tomorrow.
And lastly, there are ones for AUD/USD at the 0.6490 level. And that alongside the 0.6500 mark should help limit any major upside for the pair unless buyers find enough conviction to finally break free of the figure level. But to do so, it will need to be accompanied by broader dollar selling elsewhere. So, that is the bigger thing to be mindful about.
USDJPY
Bullseye
My Amazing Trader chart of the day as posted earlier.
144.40 held on top, 142.60 target held on the downside/
One look at this chart should tell you to get access to The Amazing Trader (30 day free trial details)
USDJPY 4 HOUR CHART
Safe-haven gold rises on weaker dollar, simmering global uncertainty
Key points:
· Trump calls China’s Xi tough, ‘hard to make a deal with’
· Fed officials cautious on rate policy outlook amid trade uncertainty
· Dollar down 0.5%
Gold prices rose on Wednesday, buoyed by a softer dollar and persistent geopolitical tensions across multiple fronts, keeping investors alert amid a range-bound market awaiting fresh catalysts.
Spot gold GOLD rose 0.9% to $3,381.32 an ounce, as of 10:43 a.m. ET (1143 GMT). U.S. gold futures GOLD were up at $3,406.80.
The U.S. dollar index DXY fell 0.5%, making gold cheaper for buyers holding other currencies.
“There is considerable geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China, driving people to buy gold. Market sentiment remains quite high, and although traders may not expect gold to rise as quickly, there is still plenty of upside,” Daniel Pavilonis, senior market strategist at RJO Futures, said.
However, “the market is just kind of sideways right now and we need some bigger signals, meaning an escalation geopolitically, that would open the path to buying more gold as an inflationary hedge.
In addition, Washington doubled tariffs on steel and aluminium imports and urged trading partners to submit their “best offers” to avoid more import levies starting in early July.
Data on Wednesday showed U.S. private employers added the fewest workers in over two years in May, though this likely under represents the gradual easing amid uncertainty from the Trump administration’s tariffs.
All eyes now turn to Friday’s U.S. non-farm payrolls report, expected to provide critical insight into the Federal Reserve’s policy direction. Fed officials have maintained a cautious stance amid ongoing trade tensions and economic unpredictability.
Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.
Elsewhere, spot silver XAGUSD1! was steady at $34.50 an ounce, platinum PL1! rose 1.3% to $1,088.31 and palladium XPDUSD1! lost 0.9% to $1,000.94.
USDJPY
This is my Amazing Trader chart of the day posted earlier.
Momentum: Upside stalled after failure to test 144.44 (high 144.39),… risk shifts to the downside
Supports 142.60/142.37 ahead of the key 142.11 as potential targets.
One look at this chart should tell you to get access to The Amazing Trader (30 day free trial details)
USDJPY 4 HOUR CHART
European Equities Close Higher in Wednesday Trading; European Commission Adopts Water Resilience Strategy
The European stock markets closed higher in Wednesday trading as the Stoxx Europe 600 gained 0.49%, Germany’s DAX was up 0.8%, the FTSE 100 increased 0.14%, France’s CAC 40 advanced 0.53%, and the Swiss Market Index rose 0.47%.
The European Commission adopted a new water resilience strategy aiming to secure clean, affordable water, restore the water cycle and foster a sustainable water economy. The commission said that the strategy consists of over 30 actions to tackle climate impacts and boost competitiveness.
Euro area bank interest rates generally declined in April, with composite costs of borrowing for new corporate loans decreasing by 14 basis points to 3.79% while new household mortgage rates fell 5 basis points to 3.27%, the European Central Bank said. Deposit rates for both corporations and households also saw reductions, reflecting a broader easing in borrowing and deposit conditions across the euro area.
In the UK, sickness absence fell to 2% in 2024 down 0.3 percentage points from 2023, with 148.9 million working days lost, according to the Office for National Statistics. Minor illnesses remain the top reason. Women, older workers, those with long-term conditions, part-time staff, and public sector employees showed higher rates.
The number of income millionaires in Germany increased to 34,500 in 2021, up 18% from 2020, Germany’s Federal Statistical Office said. While inflation explains some of this, the growth still outpaced historical averages, and most millionaires primarily earned income from businesses.
Shares of B&M European Value Retail slipped over 13% in Wednesday trading on the FTSE after the company reported preliminary fiscal 2025 results. B&M European Value Retail said group revenue for the 52 weeks ended March 29 increased to 5.57 billion British pounds ($7.55 billion) from 5.37 billion pounds a year earlier, while adjusted earnings declined to 0.34 pounds per share from 0.36 pounds a year earlier.
STMicroelectronics shares were up 11% on the Paris exchange after CEO Jean-Marc Chery said the company expects 5,000 employees to leave in the next three years, including 2,800 jobs eliminated earlier this year. About 2,000 workers will leave STMicroelectronics due to attrition
FTSE 100 chart
S&P Global final PMI came out a short while ago= ISM Services PMI is more important
BoC keeps rates unchanged… lack of reaction indicates it was as expected
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