GBP futures: bearish tone poised to persist

In light of preliminary data for GBP futures markets from CME Group, traders added more than 4.6K contracts to their open interest positions on Tuesday vs. Monday’s 183,668 contracts. In addition, volume rose by more than 4K contracts, extending the choppy activity seen in recent weeks.

GBP/USD fragile between BoE and Brexit

Cable keeps the downbeat tone so far this week, as Tuesday’s pullback was accompanied by increasing volume and open interest, reinforcing the broader bearish scenario.

Apparently, market participants have already priced in a rate hike by the BoE at the November meeting, although any outcome short of expectations and the omnipresent Brexit concerns should render any bullish attempt as short-lived.