EUR futures: room for further upside

CME Group’s preliminary figures for open interest in EUR future markets show traders added more than 2K contracts to Wednesday’s final 426,321 contracts.

Potential test of 1.1448

The strong up move seen on Thursday in EUR/USD against the backdrop of a continuation of the uptrend in volume is a bullish signal and let us infer that a probable test of earlier 2017 tops in the mid-1.1400s is back on the radar.

The immediate risk to this view comes from the US docket today, where a positive surprise from June’s payrolls could lend oxygen to the buck and drag spot lower. However, the shift to a more hawkish stance from the ECB, the broad-based economic recovery in the region and auspicious prospects of inflation should all play in favour of further inflows into EUR.