Analytics, News, and Forecasts for CFD Markets: currency news — 04-08-2020.

FXStreet notes that the Monetary Policy Committee of the Bank of England (BoE) will announce its decision on Thursday. No change in rates is expected. Analysts from Rabobank believe that the balance sheet remains BoE’s policy instrument of choice, and they expect that the pressure to act will increase in the autumn. 

“We expect that the Bank of England’s Monetary Policy Committee will keep Bank rate unchanged at 0.10% at this week’s meeting”.

“Even though we continue to view the balance sheet as the Bank’s policy instrument of choice, the slowdown in purchases implies that a further increase in the APF’s ceiling is not imminent.”

“As the MPC wants to keep its powder dry for as long as possible, we don’t expect any bold statements or strong hints at additional easing in Thursday’s Monetary Policy summary.”

“The balance of risks is clearly towards additional monetary easing, and not towards a tightening of the Bank’s policy stance. We think that it is a matter of when rather than if the MPC announces new measures.”

“The economy of the UK faces a trifecta of risks in the remainder of the year: a second wave of the virus, a Brexit with negative economic consequences, and an increase in unemployment.”

“We call for another GBP 100bn increase of the APF, setting our sights at the November meeting.”

FXStreet reports that FX Strategists at UOB Group noted the outlook on USD/JPY stays unclear for the time being.

24-hour view: “We highlighted yesterday that ‘there is scope for the sharp bounce to extend higher but any advance is viewed as part of a broad 105.30/106.70 range’. However, USD traded within a narrower range than expected (between 105.56 and 106.46). The price action offers no fresh clues and USD could trade sideways for today, expected to be between 105.50 and 106.50.”

Next 1-3 weeks: “We have expected USD to weaken since 22 Jul (spot at 106.85) and in our latest update from last Tuesday (28 Jul, spot at 105.35), we highlighted that ‘a break of 105.00 would not be surprising’ but were of the view ‘104.40 is unlikely to come into the picture so soon’. However, USD cracked 104.40 on Friday and plummeted to 104.17 before lifting off and blast past several resistance levels with ease (high of 106.05). Such price action is not common as can be seen by the wide daily range of 188 pips, its biggest 1-day range since the ‘mayhem’ in March. While the negative phase has clearly ended, the outlook for USD is unclear. From here, USD could trade in a choppy manner and within a broad 105.00/107.00 range.”

The U.S. Commerce Department reported on Tuesday that the value of new factory orders jumped 6.2 percent m-o-m in June, following a revised 7.7 percent m-o-m surge in May (originally an 8.0 percent m-o-m gain). That marked the second consecutive month of gains in factory orders.

Economists had forecast a 5.0 percent m-o-m increase.

Total factory orders excluding transportation, a volatile part of the overall reading, rose 4.4 percent m-o-m in June compared to an unrevised 2.6 percent m-o-m advance in May.

FXStreet reports that FX Strategists at UOB Group suggested that USD/CNH risks further losses on a break below the 6.9645 level in the short-term horizon.

24-hour view: “Our expectation for USD to ‘dip below 6.9755’ did not materialize as it traded in a quiet manner between 6.9765 and 6.9931. The underlying tone still appears to be soft and we continue to see chance for USD to dip below 69755. For today, the next support at 6.9645 is unlikely to come into the picture. Resistance is at 6.9880 followed by 6.9950.”

Next 1-3 weeks: “In our latest update from last Tuesday (28 Jul, spot at 6.9900), we highlighted that ‘breach of 6.9750 would indicate end of correction phase and increase risk of USD moving below the month-to-date low of 6.9645’. Since then, USD has traded mostly sideways and downward momentum has barely improved. That said, looking forward, the downside risk still appears to be higher but USD has to crack and close below the July’s low of 6.9645 before a sustained weakness can be expected.”

FXStreet notes that silver has reached the 26.02/11 2011-2012 lows. Initial failure here suggests the rally looks overextended and analysts at Commerzbank would exit any remaining longs. 

“We would allow for a corrective set back to the 23.6% retracement at 22.80 and the 38.2% retracement at 20.67 (of the move from March). We also have the 21.17 September 2019 high in this vicinity. Provided dips lower hold over the four-month uptrend at 19.26, an upside bias will be reserved.”

“Above 26.14 will target initially 27.42, the 38.2% retracement of the move from the 2011 peak. And then the 50% retracement at 31.71 of the same move.”

FXStreet reports that strategists at UOB Group gave their opinion on the perspective for the precious metal in the next months.

“Since last year, we have maintained a positive outlook for gold due to expectations of “lower for longer” interest rates.”

“Gold has since staged a strong rally over the past month, pushing its way above our quarterly longer term forecast of USD 1,850 / oz by 2Q21. With this latest rally, gold has broken above the previous peak of USD 1,920 in Sep 2011. In terms of technical outlook, we note that “the upward momentum is strong and the focus is at USD 2,000. Next resistance of note above USD 2,000 is around USD 2,040 followed by USD 2,100”.

“Fundamentally, the various positive drivers for gold price, particularly that of the massive central bank easing remain as strong as ever. However, we note that long positioning in gold has become extremely crowded with ETF tonnage rising to yet a new record high. As such, there is now an increasingly speculative element in gold’s price action with larger intra-day swings as traders are positioned for gold to trade above USD 2,000 / oz.”

“Overall, we take this opportunity in the monthly to make an interim upgrade to our gold forecast but warn that with current crowded long positioning, gold may be priced for perfection and will be ripe for profit taking should expectations of near zero interest rates suddenly reverse or financial markets succumb to another round of USD liquidity crunch, similar to what happened in March. Our new forecast for gold is now USD 2,000 / oz for 3Q20, USD 2,100 / oz for 4Q20 and USD 2,200 / oz for 1Q21 and 2Q21.”

GBP retreated against its major counterparts in the European session on Tuesday as investors continued to track a pick-up in global Covid-19 infections and awaited the outcomes of the Bank of England’s (BoE) policy meeting later this week.

Last week, the UK's PM Boris Johnson said that the next stage of lockdown easing would be postponed for at least two weeks due to a pick-up in COVID-19 infection rates. According to Johns Hopkins University, the UK has 307 252 cases of COVID-19, the 11th highest in the world. Overall, the total number of confirmed global coronavirus cases rose to 18,316,072.

The Bank of England (BoE) will announce its latest interest rate decision and rate statement on Thursday. It is expected that the British central bank will leave its policy rate and quantitative easing program unchanged.

FXStreet notes that the S&P 500 Index has cleared the price resistance at 3279/81 to bring the high-level consolidation phase to an end. Economists at Credit Suisse look for a test on the top of the key February price gap at 3328/38. 

“The S&P 500 has maintained the positive tone set on Friday and has now cleared its recent ‘reversal day’ high and price resistance at 3279/81 to bring the high-level consolidation phase to an end.”

“Although the rally is seen lacking momentum, we look for strength to extend further with resistance above 3303 seen next at 3318 and then more importantly at the top of the February price gap at 3328/38. We continue to expect this to remain a major barrier for a fresh consolidation phase to unfold beneath here. A direct break though would be seen clearing the way for a challenge on the 3394 record high.” 

“Support moves higher to 3285 initially then 3272/71, which we look to try and hold to keep the immediate risk higher. A break would warn of a retreat back to the 13-day average and price support at 3246/41, but with fresh buyers expected to show here."

FXStreet notes that as tensions mount between China and the US and as fears of a second wave increase in parts of Asia and Europe, economists at Rabobank are of the view that the rush to sell USD is overdone. They expect a EUR/USD pullback to the 1.16 zone in the coming weeks.

“Given concerns over a second wave of coronavirus and fears about what that could do to the global economy in addition to rising China tensions, we see risk that the recent rush to unload USDs may have extended too far.” 

“The world’s need for dollars almost certainly means that there will be a scurry to secure USD funds on any further breakdown in market confidence.”

“We expect a pullback towards the EUR/USD 1.16 area in the weeks ahead.” 

FXStreet notes that gold has reached Commerzbank’s target of $1983. Strategists at the bank expect the yellow metal to experience some profit taking as forays above are seen short-lived. On the flip side, the 55-day ma at $1838 is a solid support.

“Gold has reached the top of its 49 year channel at $1983. It represents our long-term target. This should hold the initial test and provoke some profit-taking.”

“Forays above $2000 are expected to remain short-lived. Above $2000 we have a point and figure target of $2030 and a Fibonacci extension to $2088.”

“Support is offered by the 55-day ma at $1838 and the five-month uptrend at $1829. Below 1829 lies the $1765 May high. This guards the $1670 June low.” 

FXStreet reports that Ho Woei Chen, CFA, Economist at UOB Group assessed the latest PMI readings in the Chinese economy.

“China Caixin manufacturing Purchasing Manager’s Index (PMI) surged 1.6 points to 52.8 in July compared to 51.2 in June (Bloomberg est: 51.1). This was the third straight month of expansion (above-50 reading). The headline PMI, production and new orders sub-indexes were all at their highest levels since January 2011.”

“Similarly, the official manufacturing PMI had also improved, edging up to a 4-month high as it rose 0.2 point to 51.1 in July (Bloomberg est: 50.8). This was the fifth straight month of expansion and comes on the back of a strong rebound from record low in February.”

“Overall, the improvements in both the official and Caixin manufacturing PMIs as well as the robust reading in the non-manufacturing PMI suggest that China’s economy will continue to recover in 3Q20. Our GDP forecast for China remains at 1.8% for 2020 with 3Q20 growth likely to accelerate to 4.9% y/y and around 5.7% in 4Q20. The key risks remain centred on the pandemic recovery globally, US-China relations as well as the impact from floods in China.”

FXStreet reports that Quek Ser Leang at UOB Group’s Global Economics & Markets Research gives his views on the prospects of the US Dollar Index (DXY).

“We first detected the weakness in USD Index two months ago. In the… update from 03 Jun 20 when USD Index was at 97.45, we stated clearly that ‘the outlook for USD Index is negative’ and that ‘the next support level of note is at 95.50’. USD Index subsequently dropped to 95.72 and traded sideways. When USD Index broke 95.50… we held the view that ‘the current movement is the next leg lower within USD Index overall down-trend’. At that time, we noted that the 6- year rising trend-line at 94.30 is a critical support. We highlighted that ‘the overall technical readings clearly point to a weaker USD in the months ahead’ and added, ‘a break of the critical support is not something to be trifled with especially when we are hard pressed to identify a nearby support level of note’.”

“USD Index cracked the 94.30 critical support last Monday (27 Jul) and within the span of a few days, hurtled lower to a low of 92.55 on Friday (31 Jul) before recovering to close lower by a whopping -4.15% at 93.35, its biggest 1-month decline in a decade.”

“The question from here is whether USD Index can maintain the current furious pace of decline as weekly RSI is already at its most oversold levels since early 2018. That said, downward momentum is still powerful and the next support is not until 91.50. This level is another critical support as it is not only at a rising trend-line that started from 2011; it is also near the bottom of the monthly Ichimoku cloud. While a break of the critical support is not ruled out, oversold conditions on the weekly chart suggest the 2018 low of 88.25 is not likely to come into the picture, at least for the next 1-2 months. The round-number of 90.00 is acting as a relatively strong support ahead of 88.25. On the upside, resistance is at 96.30 followed by the moving averages at 97.65. The latter level is acting as a solid resistance and could remain intact, possibly for the next several months, if not longer.”

FXStreet reports that during July, oil prices oscillated in a remarkably narrow range, ending the month slightly higher (Brent +5.2% MoM; WTI +2.5% MoM) with the pulse of global oil markets stuck in a range bound environment, given the push-and-pull between the virus and the reopen. Strategists at MUFG Bank see oil price risks skewed to the downside this summer and forecast Brent trading at $36/b and $46 by end-Q3 and Q4, respectively.

“Macro vulnerabilities stemming from a resurgence of the virus in the US, lagging global jet fuel growth, an expected slowdown in Chinese oil imports, headwinds to normalising activity in countries where the virus remains under control and heightened geopolitical animosities between the US and China, all amalgamated together, signals a likely lid on prices with broadly range bound activity expected in the third quarter, with oil price risks skewed to the downside.” 

“We expect the amalgamation of more tepid demand growth and the clearance of the large inventory overhang, to induce an upside cap in oil prices for the rest of 2020 – we forecast Brent ending Q3 and Q4 at $36/b and $46/b, respectively.”

Reuters reports that the size of the European Central Bank’s bond purchases will depend on the inflation outlook, the ECB’s chief economist Philip Lane said on Tuesday, warning once again about “highly uncertain” economic prospects for the euro zone.

“The overall envelope of PEPP (Pandemic Emergency Purchase Programme) purchases is a core determinant of the ECB’s overall monetary stance,” Lane said in a blog post.

“In line with the ECB’s price stability mandate, the inflation outlook plays the central role in determining the appropriate monetary stance.”

According to the report from Eurostat, in June 2020, a fourth month still marked by COVID-19 containment measures in most Member States, industrial producer prices rose, compared with May 2020, by 0.7% in both the euro area and EU. Economists had expected a 0.5% increase in the euro area. In May 2020, prices decreased by 0.6% in the euro area and by 0.5% in the EU.

In June 2020, compared with June 2019, industrial producer prices decreased by 3.7% in the euro area and by 3.4% in the EU.

Industrial producer prices in the euro area in June 2020, compared with May 2020, increased by 3.1% in the energy sector, by 0.2% for intermediate goods and by 0.1% for capital goods, while prices remained stable for durable consumer goods and decreased by 0.1% for non-durable consumer goods. Prices in total industry excluding energy remained stable.

In the EU, industrial producer prices increased by 3.3% in the energy sector, by 0.1% for both intermediate goods and capital goods, while prices remained stable for durable consumer goods and decreased by 0.1% for non-durable consumer goods. Prices in total industry excluding energy remained stable.

The highest increases in industrial producer prices were recorded in Estonia (+3.7%), Denmark (+3.3%) and Finland (+2.2%), while the only decreases was observed in Czechia (-0.1%).

eFXdata reports that Societe Generale Research flags NZD, AUD, CAD, and GBP as the most vulnerable G10 currencies in August. 

'In terms of trading positions, illiquidity and seasonals, the easiest conclusion is that FX volatility is likely to be higher this month. The second easiest conclusion is that the dollar is likely to do well against the high-beta EM and DM currencies. Our EM strategists highlight the risk to BRL and ZAR, in terms of both elevated volatility and weaker spot. We have identified NZD, AUD, CAD and GBP as the vulnerable G10 currencies," SocGen notes. 

This morning's G10 losers are CHF and NOK, but the trades we picked out for this month were short NZD/JPY and GBP/CHF. With 10yr TIPS yields at -1%, the yen should still shine," SocGen adds.," SocGen adds.

FXStreet reports that tech stocks have rallied this year, with the tech-heavy Nasdaq up over 20% vs. a 2% gain for the S&P 500. While economists at UBS don't think tech is entering bubble territory, they do think investors with a concentration in the biggest recent winners should rebalance and reposition that exposure.

“The information technology (IT) sector currently trades at 25x consensus forward EPS estimates, a 17% increase from the beginning of the year. However, using the tech-heavy NASDAQ composite as a proxy, valuations are clearly well below late 1990s levels, when the index forward P/E rose above 70x at the height of the dotcom bubble. Furthermore, the IT sector looks appropriately valued relative to other sectors given current expectations for future cash flows and discount rates.”

“After the significant outperformance of growth in general and FAAMNG in particular, many investors' portfolios may be heavily skewed towards recent outperforming stocks. For example, the top five companies in the S&P 500 (Facebook, Amazon, Apple, Microsoft and Alphabet) now account for over 20% of the index. This doesn't necessarily mean that these stocks should be sold, and we still like most of the FAAMNG complex. But it does mean that portfolios may be less diversified and therefore more risky (both on the upside and downside) than they might seem. In addition, investors that have too much exposure to these growth stocks could be at risk if value stocks start to assume market leadership.”

CNBC reports that OPEC and its allies need to find a balance between supporting oil prices and keeping U.S. crude production at bay, a strategist told CNBC as the oil-producing group starts to roll back supply cuts.

The alliance’s historic production cuts of 9.7 million barrels per day expired on July 31 this year. From August, the cuts will be tapered to 7.7 million bpd.

Oil prices fell on Monday due to oversupply concerns, Reuters reported, noting that oil output already increased by 1 million bpd in July when Gulf countries ended their voluntary extra supply curbs.

“I think we’re witnessing kind of a high-wire ... balancing act that OPEC+ is trying to execute here,” said John Driscoll, chief strategist at JTD Energy Services. 

OPEC+ in April made a deal to reduce supply to the market in a bid to support prices, which went into a “free fall” earlier this year amid demand destruction due to the coronavirus and a price war between Russia and Saudi Arabia.

“Now they’ve restored the balance, prices have recovered, but they have to be very careful because they don’t want to be the victim of their own success,” he told CNBC.

“If prices were to zoom past $45 a barrel, $50 a barrel on the back of these cuts, that may be waving the red cape in front of the U.S. independents, the producers,” he added.

“The way I see it, this is a very delicate, fragile balancing act and there’s this cloud of uncertainty overhanging all of it, on the pace of the recovery,” Driscoll said. 

He noted that it is difficult to predict how quickly the economy can recover.

Driscoll also said he’s “very skeptical” about where oil demand is going to come from, given that travel plans are still getting scrapped during the summer holiday.

Bloomberg reports that investors are so concerned about the global outlook that worldwide holdings in gold-backed exchange-traded funds now stand behind only the official U.S. reserves of bullion after they surpassed Germany’s holdings.

Gold has rallied to a record this year as the coronavirus pandemic savaged growth, with gains supported by massive inflows into bullion-backed ETFs. Bulls are fearful that the waves of stimulus to fight the slowdown may debase paper currencies and ignite inflation. They also point to simmering geopolitical tensions, rising government debt burdens, and lofty equity valuations.

Worldwide holdings in gold-backed ETFs rose to 3,365.6 tons on Monday, up 30.5% this year, according to preliminary data compiled by Bloomberg. That’s a couple of tons ahead of Germany’s stash. U.S. reserves exceed 8,000 tons.

Even after futures topped $2,000 an ounce, there are plenty of forecasts for further, substantial gains. Among them, Goldman Sachs Group Inc. says gold may climb to $2,300 as investors are “in search of a new reserve currency,” while RBC Capital Markets puts the odds of a rally to $3,000 at 40%.

FXStreet reports that during July the euro strengthened further against the US dollar, moving from 1.1247 to 1.1819. Policy optimism provides support to the shared currency. The EUR/USD pair may experience some consolidation in the near-term but economists at MUFG see upside potential in the long-run.

“While the composition of the EUR 750 billion package was altered with EUR 390 billion available for grants versus the original EUR 500 billion, the details remain supportive for the outlook ahead. Crucially, this positive sentiment is also reflective of the sound management of COVID in Europe. There are some risks to this of course. Spain in particular, but other countries too, have shown a notable escalation and containing the spread of COVID will be important for keeping EUR on a trend higher.”

“The consequence of reduce fragmentation risks in the euro-zone is greater support for yields in Germany versus the periphery and versus UST bonds. The scale of narrowing in the UST-Bund spread is very significant and points to a turn in EUR/USD trend to the upside. We do not see this changing with the Fed’s focus of QE very much on maintaining lower yields for longer.”  

“EUR upside potential is building as evident from the spot move in July. The scale of the move means some correction or consolidation is probable over the short-term. But the longer-term EUR/USD trend is now higher.”

During today's Asian trading, the US dollar declined moderately against the euro and rose against the yen.

The ICE index, which tracks the dynamics of the us dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose by 0.03%.

The dollar index continues to strengthen after the highest monthly decline in the past ten years. However, the combination of growing economic and political uncertainty in the context of the COVID-19 pandemic and in the run-up to the November US presidential election may pose a "collapse risk", usually characteristic of emerging markets currencies, analysts warn, adding that the US economic uncertainty index has jumped to the level of the rest of the world, although before the pandemic it was significantly below the global level.

Meanwhile, interest rate cuts and other monetary easing measures by the US Federal reserve, as well as a drop in treasury yields to near record lows, significantly reduced the dollar's premium to other safe haven currencies.

The australian dollar gained 0.25 percent against the U.S. dollar. The Reserve Bank of Australia, as expected, kept the key interest rate at a record low of 0.25% per annum.

According to the report from State Secretariat for Economic Affairs (SECO), consumer sentiment in Switzerland has largely recovered from its slump in April. Expectations regarding general economic development have improved, but those regarding the labour market remain very negative. Accordingly, respondents believe that now is not a good time to make major purchases.

In July, the consumer sentiment index stood at −12 points, meaning that consumer sentiment has largely recovered from its historic low in April (−39 points). However, it still comes in below average (long-term average: –5 points).

Expectations regarding general economic development have improved significantly, starting from their historically low level in April. The relevant sub-index has climbed to –17 points, indicating that a certain economic recovery has begun in the wake of the relaxation of the measures to contain the coronavirus.

By contrast, expectations regarding the development of the labour market remain very negative. Although the index on expected unemployment has improved, it is still fairly close to the historical level reached during the financial and economic crisis. Job security has also been assessed much worse than in April.

While households’ past financial situation (–10 points) has been rated at a similar level to the previous quarter, expectations regarding the financial situation have brightened considerably, with the relevant sub-index (–4 points) now only slightly below the long-term average. Declining consumer prices are also likely to have contributed to this result. Accordingly, the sub-index on anticipated price development has also dropped.

The likelihood of making major purchases has left April’s low behind but remains well below average, with the relevant sub-index standing at –17 points. Key reasons for this may be the difficult labour market prospects and the high level of uncertainty, which outweigh the improved expectations regarding households’ own budget.

FXStreet reports that NZD/USD is expected to keep the consolidative fashion unchanged for the time being, likely between 0.6540 and 0.6710, suggested FX Strategists at UOB Group.

24-hour view: “Yesterday, we held the view that NZD ‘could test the strong support at 0.6600’ but ‘a sustained decline below this level is unlikely’. NZD subsequently dropped to a low of 0.6575 before rebounding. While downward pressure is not strong, there is scope for NZD to retest the 0.6575 level before a more sustained recovery can be expected. Resistance is at 0.6630 followed by 0.6650.”

Next 1-3 weeks: “We highlighted yesterday (03 Aug, spot at 0.6620) that ‘a break of 0.6600 would indicate that NZD has moved into a consolidation phase’. NZD subsequently dropped to 0.6575 before settling on a soft note at 0.6613 (-0.24%). For the next 1 to 2 weeks, NZD is likely to trade sideways, expected to be between 0.6540 and 0.6710. Looking forward, a clear break of 0.6540 would suggest the start of a deeper pullback in NZD.”

RTTNews reports that Australia's central bank maintained its interest rate at a record low and quantitative easing unchanged as the package unveiled in March is supporting the economy as expected.

The board of Reserve Bank of Australia, governed by Philip Lowe, decided to maintain cash rate and the targeted yield on three-year government bonds of 25 basis points.

Lowe said the bank will buy government securities in the secondary market on Wednesday to ensure that the yield on 3-year bonds remains consistent with the target.

The bank vowed to maintain accommodative approach as long as it is required.

The RBA will not increase the cash rate target until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 percent target band, Lowe said in a statement.

The RBA had reduced the key interest rate to the current record low of 0.25 percent at the March meeting. Also in March, the bank had introduced asset purchase programme to combat the downturn caused by the pandemic.

As Australians deal with the coronavirus, the economy is being supported by the substantial, coordinated and unprecedented easing of fiscal and monetary policy, the banker noted. It is likely that fiscal and monetary stimulus will be required for some time given the outlook for the economy and the labor market.

The downturn is not as severe as earlier expected and a recovery is now underway in most of Australia. However, the recovery is likely to be both uneven and bumpy, with the coronavirus outbreak in Victoria having a major effect on the Victorian economy, Lowe observed.

According to the baseline scenario, output falls by 6 percent over 2020 and then grows by 5 percent over the following year. Inflation is forecast to remain below 2 percent over the next couple of years.

EUR/USD

Resistance levels (open interest**, contracts)

$1.1838 (2718)

$1.1812 (1063)

$1.1794 (927)

Price at time of writing this review: $1.1768

Support levels (open interest**, contracts):

$1.1708 (584)

$1.1677 (499)

$1.1638 (555)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 7 is 65723 contracts (according to data from August, 3) with the maximum number of contracts with strike price $1,1400 (4028);

GBP/USD

Resistance levels (open interest**, contracts)

$1.3222 (90)

$1.3153 (1622)

$1.3110 (2393)

Price at time of writing this review: $1.3072

Support levels (open interest**, contracts):

$1.2968 (1307)

$1.2931 (263)

$1.2843 (140)

Comments:

- Overall open interest on the CALL options with the expiration date August, 7 is 21728 contracts, with the maximum number of contracts with strike price $1,3250 (2547);

- Overall open interest on the PUT options with the expiration date August, 7 is 20357 contracts, with the maximum number of contracts with strike price $1,2400 (1525);

- The ratio of PUT/CALL was 0.94 versus 0.91 from the previous trading day according to data from August, 3

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.