Daily Currency Futures and Open Interest Report

The report below shows levels of open interest in currency futures market. The data is based on Chicago Mercantile Exchange Daily Volume and Open Interest Report. Data provided by the report contains Open Interest from the previous trading day.

Interpretation and analysis – GainForexSignal Team

Euro FX

EUR/USD

Date 23/01/2012

Last extreme 31/10/2011

Total Open Interest 315,634

Net Marginal Change 8,488

Marginal Accumulation 188,578

Change in Total OI (%) 83.81

The Euro technically broken out from the down trend. The COT sentiment is strongly bullish in the Euro futures market - open interest is still surging. Traders added another 8,488 new transactions on 20th Jan. The Open Interest reaching all time high levels every day. It has now amounted to unprecedented 315,634 contracts. Given the sentiment strategy we assume that the current rally is short lived and we shall see test of the support in near future. We now entered 1/3 of the long position EUR/USD at 1.2880 with the target 1.3070. We expect the price to retreat and Open Interest to drop before the full mid/long term up trend resumes.

GBP FUTURES

GBP/USD

Date 21/01/2012

Last extreme 13/1/2012

Total Open Interest 193,381

Net Marginal Change -6,368

Marginal Accumulation -21,409

Change in Total OI (%) -10.0

In Friday’s trading Cable lost 6,368 transactions. British currency has now dropped OI by 10%. Please bear in mind that we had a significant decrease in OI in this market earlier in January. After - Cable managed to recoup 12% and dropped 10% again last week. Given ranging price we expect downtrend to weaken. Higher prices in GBP/USD over long term are imminent. We have entered long position last week. It has now locked some profits. Expect Pound to rally further. Possible retrace from the current levels before the trend resumes.

YEN FUTURES

USD/JPY

Date 21/01/2012

Last extreme 27/12/2011

Total Open Interest 163,908

Net Marginal Change 2,978

Marginal Accumulation 34,406

Change in Total OI (%) 25.96

Yen futures increased another 2,978 in Friday’s session. Yen has now accumulated 34,406 or 26% new transactions. The current rate of increase is clearly fading. We shall see more range trading in yen futures. Given significant increase in long, commercial positions in this market, we anticipate higher prices in USD/JPY in the near future

FRANK FUTURES

USD/CHF

Date 21/01/2012

Last extreme 01/11/2011

Total Open Interest 40,485

Net Marginal Change 450

Marginal Accumulation 40,950

Change in Total OI (%) 144.23

Swissy’s futures interest remains flat. Traders added just 450 new positions to the market. The rate of increase has been flat in over a week. The price of USD/CHF has fallen. We assume that the anticipated top is in place. Expect rebound to test the resistance. Only 10% decrease in open interest will give a reason to enter full short position. GFS recommends to sell USD/CHF on rallies

AUD FUTURES

AUD/USD

Date 21/01/2012

Last extreme 19/12/2011

Total Open Interest 139,682

Net Marginal Change 2,564

Marginal Accumulation 37,022

Change in Total OI (%) 25.71

Interest in Australian dollar is going strong. We saw another 2,564 new positions added on Friday. AUD/USD is now testing September 2011 high. There is a pullback anticipated in short run. Long term bull trend should remain strong as long as the open interest keep coming in.

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