USD/CAD Ratio: 1.98
Signal: Bearish
USDCAD – Spending another week in the broad range between 103.50 and 97.50, the USDCAD’s Speculative Sentiment Index continues to see little significant change in retail positioning. The pair’s ratio stands at 1.96 - with 66% of traders long - compared to the 1.98 figure from last week. The breakdown of the report shows that long positions were only 0.3% stronger than yesterday and up 1.7% on the week. The opposite side saw much of the same. Total short positioning slipped 4.2% from Wednesday and was up 1.4% stronger since last week. Open interest was a moderate 5.8% higher than last week’s levels raising net positioning 3.9% above its monthly. As a contrarian indicator, the SSI points to further downside for the USDCAD. However, such moderate readings (compared to the summer and fall of last year) diminishes the signal; and it will likely remain this way until the underlying pair makes a notable break from congestion.
