EUR futures: rising open interest hints at further pullbacks

According to CME Group, preliminary figures for open interest in EUR futures showed the weekly up trend stays intact so far, with contracts increasing from Wednesday’s nearly 508K to today’s advanced 523,096 contracts.

Further decline still on the cards?

Investors’ building up of open interest contracts coincides with the deep retracement seen in EUR/USD following the FOMC meeting on Wednesday, where the Federal Reserve matched estimates and raised the Fed Funds target range to 1.00%-1.25%.

In addition, it could hint at fresh short positions being opened, opening the door for extra downside, which should find interim support around 1.1108 (May 30 low). However, the better tone of German yields carries the potential to limit the downside, with the 10-year benchmark trading in levels last seen in early June around 0.30%.