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 Nears Turning Point as Sentiment Shift
Why and how do we use the SSI in trading? View our video and download the free indicator here
EURUSD – Retail FX traders have remained mostly net-long the Euro versus the US Dollar, and a contrarian view of crowd sentiment has served us well as we’ve remained bearish into sharp EUR/USD declines. Yet it’s worth noting that ‘the crowd’ very recently turned net-short once again, and the sharp shift in sentiment warns that the Euro may soon turn higher.
The open position ratio is effectively neutral as approximately 51 percent of open trades are currently long, but a continued shift towards crowd selling would warn that the Euro is likely to rally further off of recent lows. At minimum, the sudden movement warns that we should trade with caution on any existing EUR/USD-short positions.
See next currency section: GBPJPY - British Pound Forecast to Gain further versus Japanese Yen
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