Swiss Franc Shows Mixed Positioning, Outlook
The ratio of long to short positions in the USDCHF stands at -1.01 as there are effectively an equal number of traders long and short. Yesterday, the ratio was at 1.17 as 54% of open positions were long. In detail, long positions are 19.7% lower than yesterday and 27.4% weaker since last week. Short positions are 5.0% lower than yesterday and 10.8% stronger since last week.
The overnight drop in long positions gives us a modestly bullish USDCHF bias. Yet FX Options market volatility expectations are quite low, and it seems that the US Dollar may stick to relatively narrow ranges against the Swiss Franc into typically quiet December trade.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to email@example.com
Contact David via Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.