Source: CME
GBP/USD spot ended higher at 1.3101 on Friday; its first end of the day close above the key level since September 16, 2016. The big break higher was accompanied by a jump in Open Interest by 10,952 contracts, shows the preliminary data published by the CME.
Over the last week, the total OI went from 192,714 contracts to 205,030 contracts. Clearly, the total weekly rise in the OI is more or less the product of Friday’s surge in the OI.
OI adds credence to bullish technicals
GBP/USD Daily chart
- This goes well with the fact that GBP/USD not only closed above 1.31, but also witnessed an inverse head and shoulders breakout and bullish outside week candle.
- The OI activity, thus suggests the spot could resistance at 1.3113 - offered by the trend line sloping downwards from Aug 2015 high and May 2016 high.
JPY futures: OI activity signals bullish exhaustion
The Dollar-Yen spot fell from 113.58 to 112.25 on Friday following the release of a dismal US data. On the technical charts, the currency pair suffered a head and shoulders breakdown, suggesting the rally form the low of 108.80 (June 14 low) has ended…
However, activity in the futures market points to exhaustion in the JPY rally. The Open Interest (OI) in the JPY futures fell by 2730 contracts on Friday, despite the big sell-off.
Over the last week, the total OI increased from 232,273 to 251,974. Additions to OI were seen from Monday through Thursday, which indicates a high degree of participation in the pair’s retreat from 114.49 to 112.25. Friday’s drop in the OI could be more due to withdrawal of liquidity/profit taking ahead of the weekend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.