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Posted by Tango
on September 16, 2019, 9:50 am
The OI reflects option expiration as well as Fridayís other business. Open hedges prior to expiration result in negative change in the OI while hedges from Friday result in a flat OI. On face value, the OI indicates new vs old. Best guess is that funds were short covering while the selling came from either new shorts or from longs. Some of the new shorts can be seen in the forward activity mixed with related spreads. Today we witnessed typical behavior as funds were covering but not fast enough for the sellers. The market dropped sharply from 103.70 to 102.00 selling ceased and funds resumed buying up. USDBRL is 4.0999 +0.0159 (+0.39%) and the Real weakness may be perceived as a factor by some. USDCOP is 3,355.3101 -6.14 (-0.1827%). Letís see if the market will continue with its upward trend. Iffy.