- EURUSD – Retail Traders Heavily Long US Dollar Ahead of FOMC
- GBPUSD – Crowds Remain Strongly Short British Pound
- USDJPY – Japanese Yen Forecast Hinges on FOMC Decision
- USDCHF – Swiss Franc Forecast to Strengthen Further
- USDCAD – Canadian Dollar Outlook Remains Cautiously Bullish
- GBPJPY – British Pound Forecast Turns versus Japanese Yen
Our retail FX trader-based sentiment data shows that crowds remain heavily long the US Dollar (ticker: USDOLLAR) ahead of the critical US FOMC rate decision. Our contrarian sentiment-based strategies have sold the USD accordingly.
It’s difficult to advocate taking fresh US Dollar short positions ahead of a potentially pivotal event, but recent price action and retail sentiment clearly favors continued USD losses.
We will watch market reactions to the US Federal Reserve, and indeed we may need to shift our current US Dollar-bearish forecasts on any particularly strong surprises.
How do we interpret and trade with the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to drodriguez@dailyfx.com; Contact David via Twitter at http://www.twitter.com/DRodriguezFX
Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.
