SSI: The Speculative Sentiment Index
The FXCM Speculative Sentiment Index provides an in-depth look at how retail FX traders are positioned and provides unique insight into market price moves and overall direction. Unlike major equities or futures markets, there is no single centralized exchange for forex trading. Such decentralized activity makes finding uniform volume or open interstest data impossible. DailyFX fills the gap by offering access to FXCM's proprietary volume and positioning information.
View the FXCM Speculative Sentiment Index in Real-Time
The SSI is reported Every Thursday at DailyFX.com and twice every trading day inside DailyFX PLUS.
Euro at Clear Risk for Further Declines
See a video on why we use the Speculative Sentiment Index as a contrarian indicator in our trading
EURUSD – The Euro has fallen sharply against the US Dollar, and our retail FX trader sample shows that traders are buying into EUR/USD declines. Traders remain marginally net-short as they have been since the EUR traded to $1.40 through May, 2014. Yet the most recent shift towards buying acts as contrarian signal that the Euro may continue lower.
Ideally we would see a more pronounced shift in sentiment before turning in favor of selling into Euro weakness, but as it stands we may be at the cusp of a much larger turn lower for the EUR/USD.
See next currency section: GBPUSD - British Pound Forecast to Hit Fresh Lows
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