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 Outlook Mixed, Although Crowds Net-Short Position Lingers
EURUSD - The ratio of long to short positions in the EURUSD stands at -1.28 as 44% of traders are long. Yesterday the ratio was -1.26; 44% of open positions were long. Long positions are 0.0% lower than yesterday and 4.3% below levels seen last week. Short positions are 1.4% higher than yesterday and 5.6% above levels seen last week. Open interest is 0.8% higher than yesterday and 0.9% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the EURUSD may continue higher. The trading crowd has grown further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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