EUR futures: rising open interest points to a near term top?

According to CME Group’s preliminary figures, open interest in EUR futures rose by nearly 40K contracts on Wednesday, with the number of open contracts currently standing at 513,144, following Tuesday’s rise of 10K contracts.

U-turn post FOMC

A glance at yesterday’s price action in EUR/USD shows that market participants once again stayed unable to test/surpass the critical 1.1300 barrier despite recording fresh 2017 tops just below this mark.

The sharp reversion post-FOMC allow us to infer that most of the contracts have been added following the Fed’s decision, leaving the door open for a potential extra pullback to sub-1.1200 levels and encouraging at the same time the idea that a significant near term top is in place at 1.1300.

With the FOMC meeting already gone, it seems the ball is now in the ECB camp when comes to decide the next relevant move in the single currency.