US Dollar: Long-Awaited Reversal Underway
- EURUSD – Euro Forecast to Turn Lower Against US Dollar
- GBPUSD – British Pound Outlook Calls for Losses
- USDJPY – Japanese Yen Bias Less Clear
- USDCHF – Swiss Franc Rallies Likely to Slow
- USDCAD – Canadian Dollar Could be at Sentiment Extreme
- GBPJPY – British Pound Predicted to Strengthen vs JPY
View individual currency SSI charts in our FX Sentiment sections
* Negative ratio indicates net short
Forex trading crowds have recently sold in to a nascent US Dollar recovery, giving contrarian signal that the beleaguered US currency could continue higher through short-term trade. Such a view is consistent with forex futures and options sentiment/positions, which warn that the US Dollar may be at or near an important bearish sentiment extreme. We emphasize that timing sentiment extremes and reversals is extremely challenging. Yet the recent shift in SSI positioning provides tentative short-term confirmation of a potential US Dollar recovery, and we have accordingly shifted our views on the Euro/US Dollar and British Pound/US Dollar pairs through upcoming trade.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
To get on the mailing list for the SSI and other reports from author David Rodriguez, e-mail subject line “Distribution list” to email@example.com
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.