The upcoming FX option expiries on August 11th at 10 am New York cut are a non-event, with no major expiries to speak of. This lack of significant expiries means currency traders have little to work with, and the markets will remain relatively quiet in the European morning. The focus will be on the Japanese yen, which has been falling this week, erasing the gains from the end of July. This is keeping the US dollar supported, but the softer US jobs report from last Friday adds a layer of caution. The USD/JPY pair is approaching a crucial psychological level at 160, where further intervention or Tokyo's independent action could occur. If not, the pressure will shift against Japanese officials once more. The markets are also awaiting the US CPI report, which is the main event of the week, and major currencies are in a holding pattern until the data is released. The lack of expiries today further reduces trading opportunities, and traders should be prepared for a quiet session in the European morning.
