USD/CAD Ratio: 4.05 Signal: Bearish
USDCAD – Once again, as speculative interest among other majors holds relatively neutral, USDCAD positioning has grown more extreme. Today, the pair’s SSI ratio stood at 4.05 with nearly 80% of the retail trading pool holding long trades. This is the most extreme reading for this pair since the beginning of November and extends a general trend that has seen the indicator slowly building to more one-sided markets. Such a trend is very suspect considering USDCAD price action has been relegated to a large range since the sharp reversal in the currency pair seven months ago. To be sure, trading activity is growing more robust as the SSI reading grows more extreme and USDCAD approaches the bottom of its wide range. Long positions have grown 7.3% from yesterday and are 4.5% higher than the previous week. Offering more bustle, shorts have dropped 13.3% from Wednesday and are 9.5% weaker than a week ago. And, despite the more aggressive declines in the short-side of the market, open interest is still trending higher with a 1.7% increase for the week and a level that is generally 3.0% above the monthly average.