Market News

Speculative Sentiment Index (SSI) continues to prove to be a reliable forex forecasting tool

Apr 24 2011 22:00:00 GMT
Stanimir Zhelev , Find me on Google+


More people are turning to the Speculative Sentiment Index (SSI) as it continues to prove to be a reliable forecasting tool in the forex market. This unique innovation of  FXCM Inc.(NYSE: FXCM) reveals where FXCM’s forex-trading crowd is positioned, helps traders create powerful trading strategies, and provides traders with insight where the market might potentially move.
The SSI is available free twice a day onDailyFX+for all FXCM live-account holders. The public can also view a weekly SSI report on Thursdays on


EURUSD, AUDUSD, and USDCAD all attracted great forex-market interest this past week. As of April 22, the AUDUSD was up to a new, all-time high. EURUSD, despite Portugal's debt issues, had broken back above 1.45, and the U.S. dollar hit a three-and-a-half-year low against the loonie.


Below is the FXCM’s Speculative Sentiment Index (SSI) diary of the euro, Australian dollar, and Canadian dollar for the week of April 18, and the result on the currency pairs’ price action.

An average of 65% of EUR/USD traders at FXCM shorting the pair. The SSI suggests the majority of the trading crowd is usually wrong, and bases its signals on moving against the crowd.
Result: EUR/USD continually gained. The successful trader would have been the one who had followed the SSI signal and bought the euro.
85% of FXCM AUD/USD traders thought the Aussie was going to fall, and maintained their short positions throughout the week. As a contrarian indicator, the SSI continually suggested going against the crowd and being long the pair.
Result: The AUD/USD hit a new, all-time high, and the successful trader would have been the one who had followed the SSI signal and bought the Australian dollar.
The pair has been falling since mid-March. On average, 85% of FXCM’s traders were speculating on a rise in the USD/CAD, and were longing the pair. Meanwhile, the SSI continually signaled USD/CAD losses.
Result: USD/CAD kept falling, hitting its newest low in three-and-a-half years. If the 85% of those FXCM traders had followed the SSI's consistent signal, and had sold their US dollars against the loonie, they would now be on the right side of the trade.*
About FXCM Inc.
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide.
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts. FXCM's UK subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade forex, oil, gold, silver, and stock indices on one platform.
In addition, FXCM offers educational courses on forex trading and provides free news and market research.
TAGS: fxcm ssi  fxcm  forex  forex sentiment 

More news about FXCM

More Forex Market News

CFTC publishes list of forex and binary brokers illegally soliciting US clients

Sep 15 2015 14:35:24

The new registration deficient ‘RED List’ available on includes companies illegally offering forex and binary options trading services to US residents.    Washington, DC — As part of the U.S. Read more

Saxo Bank opens office in China under the Shanghai FTZ regulation

Sep 15 2015 14:09:29

Saxo Bank, a Danish bank specialized in providing online trading services, has announced the opening of its new China office in Shanghai World Financial Centre, Lujiazui, within the Shanghai free-trade zone. The new office will be operating within the Shanghai Free Trade Zone regulatory framework. Read more

Swissquote's new Themes trading - Pick a trend, not a single stock

Sep 09 2015 15:35:44

    • Swissquote brings "thematic" investing to the masses, allowing clients to participate in long-term, mid-term and short-term opportunities created by real time market developments, trends and events   • The thematic approach allows investors to take advantage ... Read more

FCA UK launches a new financial services register

Sep 09 2015 12:40:26

Financial Conduct Authority (FCA), the financial regulatory body in the United Kingdom, has launched a new Financial Services Register. It is meant to make it easier to find information on firms, individuals and other bodies that are, or have been, regulated by the PRA and/or the FCA. Read more

New Zealand’s Financial Markets Authority has deregistered 28 FSPs in the last 12 monhts

Aug 28 2015 14:12:38

New Zealand’s Financial Markets Authority (FMA) today published today published its enforcement and investigations report for the year ending 30 June 2015. During the year, FMA's  enforcement team was involved in 51 inquiries and investigations, and 28 litigation matters. Read more

SCAM: FCA UK and FMA NZ warn against

Aug 19 2015 14:58:59

UK's Financial Conduct Authority (FCA) and the Financial Markets Authority of New Zealand (FMA) have issued warnings against Tilney Asset Management, a unauthorized company offering forex trading, broker assisted trading accounts, full service trading accounts, managed accounts and self-directed tra... Read more

New Zealand's FDRS: Only one of the disputes for 2015 is not related to forex

Aug 17 2015 11:26:34

 New Zealand's Financial disputes resolutions scheme  (FDRS), a free and independent dispute resolution scheme helping consumers and financial service providers to resolve disputes, has announced the results of its activity for the first half of 2015. Read more

FSCS to pay compensation of up to the customers of Liquid Markets

Aug 13 2015 14:51:30

Today Financial Services Compensation Scheme (FSCS) announced that Liquid Markets' customers are are a step closer to receiving compensation. The UK forex broker Liquid Markets halted its operations seven months ago on the SNB decision to abandon the 1.20 floor on EUR/CHF. Read more

Interview with Svyatoslav, Tickmill's Trader of the month – July 2015

Aug 12 2015 09:16:40

Each month Tickmill gives out a $1000 prize to the trader who shows not only good profits, but also excellent risk and money management skills. All Tickmill live account users participate automatically so you can continue trading as normal. No registration is required. Read more

SCAM: Canada's regulator OSC warns against BerkleyFX, OptiCrown and Amber Options

Aug 10 2015 15:22:17

Ontario Securities Commission (OSC), has issued warnings against the unauthorized forex broker BerkleyFX and two binary options brokers – Amber Options and OptiCrown.    Blue Bay Finance Ltd. doing business as Opticrown. Read more