Retail FX traders are near-neutral the US Dollar (ticker: USDOLLAR) against the Swiss Franc, and the lack of crowd conviction gives us little reason to expect major USDCHF moves.
According to our FXCM Execution Desk sample, there are a roughly equal number of retail traders long the USDCHF as those short. We’ll need to wait for a swing in sentiment before taking a stance on the Swiss Franc, and low FX market volatility suggests that the USDCHF may continue trading in a tight range.
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.
