[B]USD/CAD Ratio: 3.44
[/B][B]Signal: Bearish[/B]
[B]Currency[/B] [B]Last Week[/B] [B]Present*[/B] [B]% Long[/B] [B]% Change in Positions Outstanding[/B] [B]Signal[/B] USDCAD 3.10 [B]3.44[/B] 77% -7.44% Bearish
[B]USDCAD – [/B]While positioning has grown less extreme for most of the other majors, the USDCAD’s Speculative Sentiment Index grows increasingly one-sided. Today, the pair’s gauge stood at 3.44 with nearly 77% of retail traders holding long positions. Just yesterday, the index stood at 3.83, which was the most extreme reading since the beginning of November - a sign that momentum is building for a further downside move. What’s more, the sentiment indicator has steadily built up to this week’s levels since April, further suggesting the recent decline in USDCAD is a stronger trend than anything we have seen in the past six months. From the report’s breakdown, the positioning of the retail group was somewhat mixed. Long trades slipped 1.2% from yesterday and were 5.7% below last Thursday’s levels. At the same time, shorts jumped 11.6% from Wednesday but declined a more aggressive 12.8% from last week. Showing a steadfast desire to fight the developing downside momentum (in contrast to GBPUSD, USDJPY and USDCHF), open interest was only 5.1% below last week’s levels and 3.1% under the monthly average.