• EURUSD – Euro Forecast Turns Bullish Against Dollar
• GBPUSD – British Pound Sentiment Points to Gains
• USDJPY – Japanese Yen Outlook Remains Bullish
• USDCHF – Swiss Franc Forecast Positive
• USDCAD – Canadian Dollar Forecast to Gain Further
• GBPJPY – Sentiment-based Bias Points to Losses
While the SSI is available once a week on DailyFX.com, you can receive SSI readings twice a day in DailyFX Plus Forex Intraday Trading Signals
Forex trading crowds have bought aggressively into US Dollar declines against the Euro, British Pound, Japanese Yen, Swiss Franc, and Canadian Dollar. Our contrarian algorithmic trading systems have accordingly grown aggressively short the downtrodden US currency, and current downward USD momentum shows little hope of slowing. Last week we reported that other Forex positioning measures showed US Dollar sentiment at bearish extremes—hinting at imminent reversal. Yet we were clearly premature in our call, as market sentiment can and obviously does remain extreme for extended periods of time. Given current retail crowd positioning, we see little scope for a substantive Dollar reversal through upcoming trade.
Historical Charts of Speculative Forex Trading Positioning
EURUSD – The ratio of long to short positions in the EURUSD stands at -1.70 as nearly 63% of traders are short. Yesterday, the ratio was at -1.41 as 58% of open positions were short. In detail, long positions are 15.6% lower than yesterday and 27.7% weaker since last week. Short positions are 1.9% higher than yesterday and 22.6% stronger since last week. Open interest is 5.4% weaker than yesterday and 3.5% below its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.
GBPUSD – The ratio of long to short positions in the GBPUSD stands at -1.15 as nearly 54% of traders are short. Yesterday, the ratio was at 1.22 as 55% of open positions were long. In detail, long positions are 10.9% lower than yesterday and 14.3% weaker since last week. Short positions are 25.7% higher than yesterday and 29.0% stronger since last week. Open interest is 5.6% stronger than yesterday and 6.5% above its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains.
USDJPY – The ratio of long to short positions in the USDJPY stands at 3.71 as nearly 79% of traders are long. Yesterday, the ratio was at 3.53 as 78% of open positions were long. In detail, long positions are 3.2% higher than yesterday and 10.7% stronger since last week. Short positions are 1.7% lower than yesterday and 2.3% weaker since last week. Open interest is 2.1% stronger than yesterday and 4.1% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.
USDCHF – The ratio of long to short positions in the USDCHF stands at 2.48 as nearly 71% of traders are long. Yesterday, the ratio was at 2.22 as 69% of open positions were long. In detail, long positions are 0.1% lower than yesterday and 15.1% stronger since last week. Short positions are 10.5% lower than yesterday and 0.0% weaker since last week. Open interest is 3.3% weaker than yesterday and 7.3% below its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.
USDCAD – The ratio of long to short positions in the USDCAD stands at 3.34 as nearly 77% of traders are long. Yesterday, the ratio was at 3.22 as 76% of open positions were long. In detail, long positions are 1.2% lower than yesterday and 27.9% stronger since last week. Short positions are 4.7% lower than yesterday and 28.2% weaker since last week. Open interest is 2.0% weaker than yesterday and 5.2% above its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.
GBPJPY – The ratio of long to short positions in the GBPJPY stands at 1.72 as nearly 63% of traders are long. Yesterday, the ratio was at 1.90 as 66% of open positions were long. In detail, long positions are 4.0% higher than yesterday and 2.1% stronger since last week. Short positions are 15.3% higher than yesterday and 9.9% weaker since last week. Open interest is 7.9% stronger than yesterday and 11.3% below its monthly average. The SSI is a contrarian indicator and signals more GBPJPY losses.
How do we interpret the SSI? Read our brand-new Primer on the SSI.
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Have any further questions about the SSI and forex positioning data? Ask the author David Rodríguez on our forex forum.
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