There are no major FX option expiries for 12 March at 10am New York time. Trading sentiment will mainly focus on the prevailing risk mood in the coming sessions.
Ongoing discussions around Trump’s tariffs will remain a key topic, while the US Consumer Price Index report will be released later in the day. This report could play an important role in determining market reactions, particularly regarding risk trades’ selloff or recovery.
Market Sentiment And Trade Policy
With no sizeable FX option expiries scheduled for 12 March at the 10am New York cut, attention shifts entirely to broader market sentiment. Given the absence of expiries that could anchor price action, movement will largely depend on shifts in investor appetite and external factors shaping global markets.
Current discussions regarding trade policy, particularly the stance taken by Trump on tariffs, will continue to generate debate. Markets will watch closely for any fresh developments, as shifts in trade policy expectations can have wide-reaching consequences. Any new announcements or rhetoric could influence risk assets, shaping positioning in the coming days.
Later, the release of the US Consumer Price Index report is expected to guide market direction. Inflation data of this nature provides a direct signal to traders, especially when interpreting potential shifts in Federal Reserve policy. A higher-than-expected print could revive concerns over extended restrictive monetary policy, while a softer number may provide room for speculation on easing measures.
Impact Of Inflation Data
Without large expiries dictating short-term flows, trading decisions will rely more on headline-driven movement. A strong inflation reading could lead to renewed selling in risk-sensitive trades, particularly if markets reassess the likelihood of future policy adjustments. On the other hand, a weaker figure might offer some relief, prompting a shift in positioning as participants reassess expectations.
In the absence of a fixed technical anchor from options, rapid adjustments to sentiment should be anticipated. Short-term positioning may become more reactive, prompting wider fluctuations as traders interpret fresh data and policy signals. Markets will likely remain alert to any unexpected policy remarks or economic surprises that could drive volatility beyond what is currently priced in.
