EUR futures: consolidation likely near term

CME Group’s preliminary data for EUR futures markets saw open interest increasing marginally by 41 contracts on Wednesday vs. Tuesday’s 567,463 contracts. In addition, volume went down sharply by almost 60K contracts.

EUR/USD room for a test of 1.2165

The recent sharp decline in EUR/USD has been accompanied by muted activity in open interest and a an important decline in volume, which appears to have removed some tailwinds from the ongoing down move.

Spot thus faces some consolidation in the very near term, particularly in light of the second testimony by Chief Powell later today and the release of key data in the US docket. A visit to January 18 low at 1.2165 remains, therefore, on the cards.