Market News

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

Apr 24 2011 22:00:00 GMT
By
Stanimir Zhelev , ForexBrokerz.com 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 DailyFX.com.
 

 

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.

 
EUR/USD
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.
 
AUD/USD
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.
 
USD/CAD
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

Malta increases the minimum capital requirement for forex license

Oct 23 2014 00:53:25

MFSA regulated STP brokers holding Category 2 licence will be subject to a higher minimum initial capital requirement of €730,000, similar to the initial capital requirement for market-makers acting as counterparty to clients. Read more

FXPA: A new association addresing forex market regulation

Sep 26 2014 13:17:06

FXPA’s aim is to provide strong advocacy for the FX industry, engaging key financial regulators and policymakers.   Today marks the launch of the Foreign Exchange Professionals Association (FXPA), a new trade body uniquely comprised of a cross-section of FX industry participants. Read more

Forex Scam: France’s financial regulator AMF warns about 166 unregulated brokers

Sep 24 2014 16:23:19

French financial regulator AMF has warned the investors against 166 unregulated forex and binary option brokers, operating in the country without proper authorization. Read more

Myfxbook advertises forex contest sponsored by the controversial ForexBrokerInc

Sep 15 2014 12:35:41

Myfxbook, the reputable social trading platform, is running a contest with a controversial and unregulated forex broker, ForexBrokerInc, against which the Malta Financial Service Authority has warned the public. Read more

Forex Scam: ASIC cautions against First Forex, FiFx, and FiFx Global

Sep 15 2014 09:00:02

The Australian regulator informs the public that First Forex, FiFx and FiFx Global (fifx.com) falsely claim that their services are under the regulation of ASIC (Regulation No. 290600). Read more

Forex Scam: FCA warns against LEM Spreads

Sep 12 2014 12:48:07

The UK regulator has found another company that is better to be avoided. The company called LEM Spreads offers its highly suspicious service at lem-spreads.net and lemspreads.com. Read more

Forex Scam: FCA issued a warning against PlusFN

Sep 11 2014 12:53:17

The UK regulator warns against an unregulated entity using the names PlusFN Ltd +FN, and Equity Sky Capital Marketing Limited (plusfn.com). Read more

US regulator fines Zulutrade $150k for accepting accounts from Iran, Sudan, and Syria

Sep 10 2014 10:51:22

Zulutrade, one of the two largest social trading platforms, has settled a case with the US Commodity Futures Trading Commission (CFTC) for accepting clients from countries that are sanctioned financially by the US. Read more

ASIC rescinds Global Derivative Services Ltd license

Sep 09 2014 09:16:29

The Australian regulator concluded that Global Derivative Services Pty Ltd has failed to comply with a number of its AFS license obligations. As a result the company’s Australian financial services (AFS) license is cancelled. Read more

Forex Scam: FCA warns against BAM Forex a clone of BAM Capital Ltd

Sep 08 2014 10:23:21

The UK regulator issues a warning against BAM Forex (bamcapitalltd.co and bamforex.co) which is using the credentials of BAM Capital Ltd (bam-capital.co.uk) to mislead people it is a regulated and safe company.   Another day, another fraud scheme revealed by a regulator. Read more