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.
British Pound Forecast to Hit Fresh Lows
See a video on why we use the Speculative Sentiment Index as a contrarian indicator in our trading
GBPUSD – Retail forex traders remain aggressively long the British Pound versus the US Dollar, and a contrarian view of crowd sentiment leaves us firmly in favor of selling into GBP/USD declines. Indeed, the total number of open retail long positions in our sample is at its highest in 10 months and net-positioning is its most extreme since the GBP traded to $1.46 in April.
Such aggressively one-sided sentiment leaves us with little reason to abandon our contrarian bias towards selling into British Pound weakness.
See next currency section:USDJPY - US Dollar at Risk versus Yen, but Losses Far from Guaranteed
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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