EUR/USD: options markets signal fading momentum

CME Group’s preliminary figures for Thursday in the 6EU7 contract expiring on August 4 showed and increment of 619 contracts in OTM (‘out of the money’) Calls mainly in the 1.1650 and 1.1700 strike prices (+172 contracts and +149 contracts, respectively).

In addition, OTM Puts rose by 427 contracts in the 1.1250 strike price (236 contracts) and the 1.1300 strike price (177 contracts).

Activity in ITM (‘in the money’) Calls and Puts showed increments of 27 contracts and 93 contracts, respectively. The Put/Call ratio stayed at 0.98 in the meantime.

EUR/USD risks further downside

The increment in OTM Calls hints at the fact that market participants stay tilted to the short side of the trade, and at the same time allows us to infer that today’s US docket is expected to come on the strong side, particularly the inflation figures tracked by the CPI.