Sentiment Favors Euro/US Dollar Rallies
- EURUSD – Euro Likely to Rally Further Against USD
- GBPUSD – British Pound Forecasts Call for Strength
- USDJPY – Japanese Yen Rallies Could Continue
- USDCHF – Swiss Franc Outlook Calls for Gains
- USDCAD – Canadian Dollar Forecast to Gain Further
- GBPJPY – British Pound Outlook Unclear against JPY
View individual currency SSI charts in our FX Sentiment sections
Retail forex trading crowds continue to buy into US Dollar (Ticker: USDOLLAR) weakness, and our contrarian Speculative Sentiment Index calls for further Euro, British Pound, Canadian Dollar, Swiss Franc, and Japanese Yen gains against the downtrodden USD.
Our proprietary data shows that US Dollar long positions jumped 75 percent against the British Pound since last week, while bets on USDCAD strength are a noteworthy 31 percent above levels seen 7 days ago. We use the SSI as a contrarian indicator, and such sharp shifts in positioning favor continued US Dollar weakness.
We will need to see significant shifts in retail crowd sentiment before calling for a US Dollar recovery against high-flying counterparts.
View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.