SSI: The Speculative Sentiment Index
The SSI is reported Every Thursday at DailyFX.com and twice every trading day inside DailyFX PLUS.
Positioning Data Leaves us in Favor of buying British Pound
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
GBPUSD –The ratio of long to short positions in the GBPUSD stands at 1.06 as 51% of traders are long. Yesterday the ratio was -1.19; 46% of open positions were long. Long positions are 8.7% higher than yesterday and 3.2% below levels seen last week. Short positions are 13.7% lower than yesterday and 7.7% below levels seen last week. Open interest is 3.5% lower than yesterday and 0.6% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPUSD may continue lower. The trading crowd has flipped from net-short to net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:USDJPY - Traders Buying USDJPY as it Sticks to Large Range
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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