The FX option expiries for May 13, 10 am New York cut, are relatively uneventful, with no major expiries to note. The market's focus remains on the US-Iran situation, which continues to create uncertainty and edge broader markets. Oil prices are on the rise, with WTI crude maintaining its position above $100, and a recent US inflation report has contributed to a cautious risk sentiment. Bond yields are also increasing, adding to the market's challenges. US stocks experienced a slight decline yesterday, but a late recovery on Wall Street helped stabilize the situation. The overall market mood is steady today, with US futures showing a slight increase.
The US-Iran developments will likely continue to dominate the market's attention, but President Trump's upcoming visit to China could also cause some market shifts. As a result, major currencies are expected to remain relatively stable, with no significant price movements due to the lack of notable expiries.
EUR/USD is trading below 1.1800, while USD/JPY is approaching a one-week high, with the possibility of intervention. The overall dollar sentiment is tentative, aligning with the current risk sentiment. This stability in major currencies is expected to persist in the coming session.
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