I would not read to much into the open interest of otions. Options can be used for a variety of reasons and do not necessarily express speculative directional bets. In addition, many Fx options are traded OTC / non exchange based which could give you an incomplete or incorrect picture.
The following user says Thank You to Cogito ergo sum for this post:
Yes, if you know what you are doing. Are the puts or calls more expensive? In a sideways market they should be relatively balanced, but if there is a strong trend or pressure in one direction, you'll find the option pricing may express this before price on the underlying does. The hard part is in uncovering if the options volume is due to that position being hedged or building a directional position.
25-delta risk reversals show the difference in volatility, and therefore price, between puts and calls on the most liquid out-of-the-money (OTM) options. Positive values indicate calls being more expensive than puts (upside protection on the underlying forex spot is relatively more expensive), while negative values indicate puts are more expensive than calls (downside protection is relatively more expensive). Significant changes can indicate a change in market expectations for the future direction in the underlying forex spot rate.
I agree with Cogito ergo sum.
I would rather look at COT (commitment of traders) for that kind of information.
You should have a look at the webinar here from Fxcm , where they talk about getting a edge in the forex spot market.