FX option

FX option expires on June 13th at 10 a.m. in New York.

A glance at what’s on the board for today

On days like these, sentiment is everything, therefore expiries aren’t as important. In any case, there aren’t any major expiries on the horizon for today, so the technicals and the overall market attitude will continue to rule the day.

Once again, be mindful of the lack of major expiries near and around the 135.00 level for USD/JPY. This generates “air pockets” for the couple on each side of the central figure once more.

 Crypto

The crypto collapse continues to rumble

Bitcoin is down to $24,100, Ethereum is near $1,200, and the crypto market is still in free fall.

The cryptocurrency market’s implosion over the weekend shows no signs of slowing down.

It is once again under pressure as market concerns continue to ripple across all asset classes as the week begins.

 Dollar

• The dollar is in firm control as market worries resonate, markets race for the exits, and the dollar reigns supreme.
• The deleveraging switch has been turned on again as markets continue to dump everything, as they did last Friday.

• The dollar has benefited the most from all of this, as it is seen gaining across the board and firmly in charge as European morning trade gets underway. Stocks are plummeting, and the bond selloff is intensifying in both Europe and the United States.

• The pair had been consolidating heading into the ECB meeting last week, but the central bank’s failure to address fragmentation issues was a crucial catalyst in the selloff in European assets that followed. In this way, the euro is no exception.

• Elsewhere, the GBP/USD is down 0.6 percent as sellers go for the year’s lows, as previously mentioned. The USD/JPY is still flirting with the 135.00 level, but there are some counter-flows from market risk concerns at work.

• In other currency markets, the USD/CAD is up 0.4 percent to 1.2830, while the AUD/USD is down 0.7 percent on the day and challenging the 0.7000 handles once more.

• If the market sentiment does not improve considerably today, a breach below 0.7000 might see the selling intensify.

Bonds

As the bond selloff intensifies, 10-year Treasury rates are at their highest level since 2018 Markets are resorting to selling everything One could argue that the trigger came as European bonds fell in the aftermath of the ECB meeting last week, but inflation fears haven’t helped the situation at all. Bond selling has resumed in European morning trade, with 10-year Treasury rates rising 9 basis points to 3.24 percent. It’s the highest level since 2018.

The 2018 highs are expected to be around 3.25 percent to 3.26 percent, so that will be a significant area to keep an eye on before a possible technical break towards 3.50 percent next. It’s looking bleak out there, and there’s no way out but to bank on the dollar right now.

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