SSI: The Speculative Sentiment Index
The FXCM Speculative Sentiment Index provides an in-depth look at how retail FX traders are positioned and provides unique insight into market price moves and overall direction. Unlike major equities or futures markets, there is no single centralized exchange for forex trading. Such decentralized activity makes finding uniform volume or open interstest data impossible. DailyFX fills the gap by offering access to FXCM's proprietary volume and positioning information.
View the FXCM Speculative Sentiment Index in Real-Time
The SSI is reported Every Thursday at DailyFX.com and twice every trading day inside DailyFX PLUS.
Euro Forecast was Accurate Last Week, but now what?
EURUSD – Retail FX traders were recently the most net-short the Euro versus the US Dollar since it traded to $1.40 through May, 2014, and a contrarian view of crowd sentiment kept us steadily bullish the EUR/USD. Yet the past week has seen a substantial pullback in short interest. First we saw many traders forced out of short positions as the pair spiked to $1.17, and since then we have seen many take profits on the substantial Euro pullback. Such a dramatic reversal in both price and positioning creates a great deal of uncertainty.
Crowds remain net-short, and we would typically treat this as a contrarian indication that the EUR/USD could continue higher. Yet clear market indecision since last week leaves us waiting for a more sustained shift in sentiment before taking a strong stance.
See next currency section: GBPUSD - British Pound Likely to Fall Further
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX