The U.S. dollar remains solid in trading, as investors question whether the Federal Reserve will opt for a deeper interest rate cut. Uncertainty surrounds a potential move to drop rates to 3.00-3.25%, driving market speculation and influencing currency performance.

Global investors are keeping a close watch on newly inflamed U.S.-China tensions, fearing a resurgence of damaging trade conflicts. Despite these concerns, markets have managed intermittent rebounds, and gold continues its ascent to record highs.

Currency markets are watching closely as EUR/USD faces option expiries at 1.1700 and 1.1750, providing potential boundaries for price action. Meanwhile, traders anticipate whether USD/JPY can break above the 150.00 mark, spurred by the latest political developments in Japan.

The foreign exchange market is closely watching a single significant option expiry for EUR/USD at the 1.1600 mark. While not a critical technical level, this expiry could still exert pressure on any upside moves as the dollar remains firm ahead of speeches at Jackson Hole.