USDCAD – Trading crowds remain steadily net-long the US Dollar against the Canadian Dollar. Yet recent swings in positioning give us an admittedly mixed bias on the USDCAD pair.
Our SSI ratio stands at 2.3 as approximately 70% of traders in our sample are long. Clearly, sentiment remains one-sided. Yet it is worth noting that long positions rose a mere 4% since last week while shorts jumped 27%.
It’s important to note that the USDCAD continues to bounce near the psychologically significant C$0.9900 mark and now trades near parity. We remain generally bearish the US Dollar across the board, but choppy moves in the USDCAD suggest there are better USD short opportunities in other currency pairs.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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