FXStreet (Bali) – Open interest in EUR/USD was relatively unchanged in the futures positioning during the week up to June 2nd, with short-covering dominating price action before selling later in the week, exacerbated by a stellar US NFP report.
The bullish action up to June 2nd saw a modest increase of large spec longs, while in the lev funds community, there was a slight uptick in long-side commitment while lev shorts were caught wrong footed, as seen by the big reduction.
Commercials continued not interested on buying near the lows early in the week – June 1st -, perhaps expecting lower prices to load up? Meanwhile, dealer shorts were reduced on the move up, suggesting the upleg was mainly a withdraw of liquidity/stop loss hunting, with no real substance behind. Interestingly, asset managers short commitment increased quite significantly, further implying topside should be well capped.
(Market News Provided by FXstreet)