GBP futures: rallies to stay limited

Open interest in GBP futures markets dropped by around 2.1K contracts on Friday vs. Thursday’s final 259,003 contracts, according to preliminary figures from CME Group. On the other hand, volume rose by more than 15K contracts, partially offsetting the previous sharp drop.

GBP/USD at the mercy of Brexit

Cable opened with a gap lower today following rising uncertainty around Brexit and May’s government. Friday’s down move was amidst decreasing open interest despite a build in volume. In the very near term, GBP/USD is seen sidelined, although further weakness on Brexit headlines could certainly weigh on sentiment.