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.
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The SSI is reported Every Thursday at DailyFX.com and twice every trading day inside DailyFX PLUS.
British Pound Likely to Fall Further
GBPUSD –Our retail FX trader data shows that the majority of traders remain long the British Pound versus the US Dollar, and a contrarian view of crowd sentiment leaves us focused on further short-term weakness. Last week we noted that traders had previously turned net-short for the first time since May, and that served as signal that the pair could be at a key turning point. That signal preceded a major break to the topside, but since then we’ve seen the pair break down and crowds have resumed buying.
And as such, one-sided sentiment now leaves us firmly in favor of selling into GBP declines.
See next currency section:USDJPY - US Dollar Looks like a Sell versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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