The FXCM Speculative Sentiment Index is an excellent tool to gauge trader positioning and sentiment in the FX market. Unlike major equities or futures markets, there is no single centralized exchange for forex trading. Such decentralized activity makes finding uniform volume or open interest data impossible. DailyFX fills the gap by offering access to FXCM’s proprietary volume and positioning information—giving an unparalleled view of forex market sentiment.
| -1.33 | -1.69 | 57.0% | -9.1% | Bullish |
| -1.16 | -1.76 | 56.0% | 2.4% | Bullish |
| 4.89 | 4.97 | 83.0% | 4.0% | Bearish |
| 3.77 | 5.87 | 79.0% | 6.4% | Bearish |
| 1.82 | 2.57 | 72.0% | 4% | Bearish |
| 1.45 | -1.13 | 45.0% | 1.1% | Bullish |
Euro Forecast To Gain Versus US Dollar
EURUSD - The ratio of long to short positions in the EURUSD stands at -1.69 as nearly 63% of traders are short. Yesterday, the ratio was at -1.50 as 60% of open positions were short. In detail, long positions are 9.1% lower than yesterday and 2.6% weaker since last week. Short positions are 3.0% higher than yesterday and 28.3% stronger since last week. Open interest is 1.8% weaker than yesterday and 103.9% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.
British Pound Turnaround May Be On The Horizon
GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.76 as nearly 64% of traders are short. Yesterday, the ratio was at -1.74 as 63% of open positions were short. In detail, long positions are 1.5% higher than yesterday and 0.7% weaker since last week. Short positions are 2.8% higher than yesterday and 54.0% stronger since last week. Open interest is 2.4% stronger than yesterday and 133.5% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains.
Japanese Yen Positioning Remains At Extreme Levels
USDJPY - The ratio of long to short positions in the USDJPY stands at 4.97 as nearly 83% of traders are long. Yesterday, the ratio was at 3.47 as 78% of open positions were long. In detail, long positions are 11.5% higher than yesterday and 16.2% stronger since last week. Short positions are 22.1% lower than yesterday and 7.4% stronger since last week. Open interest is 4.0% stronger than yesterday and 126.1% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.
Swiss Franc May Continue To Strengthen Against The Dollar
USDCHF - The ratio of long to short positions in the USDCHF stands at 3.87 as nearly 79% of traders are long. Yesterday, the ratio was at 2.48 as 71% of open positions were long. In detail, long positions are 18.6% higher than yesterday and 31.7% stronger since last week. Short positions are 23.9% lower than yesterday and 11.7% weaker since last week. Open interest is 6.4% stronger than yesterday and 137.1% above its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.
Canadian Dollar Forecast To Break Below Narrow Range
USDCAD - The ratio of long to short positions in the USDCAD stands at 2.57 as nearly 72% of traders are long. Yesterday, the ratio was at 2.19 as 69% of open positions were long. In detail, long positions are 9.1% higher than yesterday and 32.5% stronger since last week. Short positions are 7.2% lower than yesterday and 2.4% stronger since last week. Open interest is 4.0% stronger than yesterday and 145.1% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.
British Pound Forecast To Advance Against Yen
GBPJPY - The ratio of long to short positions in the GBPJPY stands at -1.13 as nearly 53% of traders are short. Yesterday, the ratio was at -1.33 as 57% of open positions were short. In detail, long positions are 10.3% higher than yesterday and 4.5% weaker since last week. Short positions are 5.8% lower than yesterday and 77.1% stronger since last week. Open interest is 1.1% stronger than yesterday and 137.7% above its monthly average. The SSI is a contrarian indicator and signals more GBPJPY gains.
Weekly Overview
Speculative Sentiment Index Points to Further U.S. Declines
Choppy U.S. dollar price action has led to mixed Forex trading crowd sentiment, moderating our conviction in calling for further USD weakness. Our sentiment-based algorithmic trading strategy remains short the U.S. dollar against the British Pound and the euro, while positioning in the USDJPY calls for additional declines as the ratio is up from 3.47 yesterday, and unchanged from last week. Indecisiveness across the FX markets makes it difficult to a make short-term forecast with assurance. However, market participants are sure to keep an eye on further developments as they may prove important in deciding market direction for the greenback.
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