Some interesting FX indicators

Trading Discussion News and Economy
1

I have found some useful FX sentiment indicators

  1. sovereign CDS spreads. this is an indication of the risk of a country defaulting on its debt. the higher the spread, the more likely the default (and a downward pressure on the currency. find them at CDS Movers

  2. currency futures- found every Friday at CFTC Commitments of Traders Report - CME (Futures Only)
    the changes in long vs short positions, for both non commercial and commercial traders…

  3. volatility skew in FX option prices. when the market maker implies higher volatility in calls than puts, they are anticipating a rise in the pair…you can getv this data with a demo acct at Saxobank (one of the few market makers in fX options)

I track all this and much more (current acct balance, budget balance, etc) in my weekly briefing.

2

I am very interested in your indicators. I have a meeting with my FX partner and we call it our weekly strategy meeting. Perhaps we could compare notes on what we talk about to get some new ideas.

Talk to you later

Jeremy

3

Hi Jeremy
If you like the indicators, may I suggest you take a look at my weekly fx briefing. While some of the indicators are free for the taking, some of the indicators (such as risk reversals) are from services I pay for. You can get them pretty cheaply in my newsletter, as well as many other very useful metrics.

see 4xtradertools.com

there’s a tab where you can download a sample.