EUR/USD: Futures OI Increased by 3.7k Last Friday

EUR/USD: Futures OI Increased by 3.7k Last Friday

16 May 2016, 08:21
Roberto Jacobs
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EUR/USD: Futures OI Increased by 3.7k Last Friday

Preliminary data from the CME Group shows that futures traders added new business in the 6E contract (EUR/USD) last Friday, a day in which the pair broke a key area of support at 1.1350, suggesting that the decline is being supported by new players.

Open interest shows increase during 1.1350 breakout day

The increase in open interest* on Friday, May 13th, was of 3,700 contracts that were added in what was a decisive bearish directional day, implying potential for follow through to the downside this week, should intrinsic value (Fed fund rates) and risk profile (risk on/off) agree.

*Note, if instead of an increase in open interest in the 6E contract last Friday, we saw a negative reading, that implies a withdrawal of liquidity, via long EUR players closing their positions, also referred as long liquidation; when that occurs, despite the depreciation in the Euro, it implies no substance/commitment behind the bear move.


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